This study set out to examine the place of radio in rural development in Nigeria. The rationale behind the study is to find out the prospects and challenges of using radio as a tool for rural development in Nigeria. Communication generally, has a very crucial role to play in bringing about positive attitudinal change. The first requirement for the development of an information society that enables the effective use of the radio is wide spread access to the radio set and radio programmes. Radio plays a very significant role in the development of the rural and urban areas of any society. Several problems are however associated with the use of radio as tool for rural development in Nigeria; some of which are: communication related problems, message related problems, illiteracy, the use of English Language by the electronic media, multiplicity of language in Nigeria, lack of audience feedback, ownership problem, dearth of qualified personnel, urban-centred development journalism and dearth of community based or vernacular radio/telecommunication. The paper concludes that radio is an important tool for entertaining, informing and educating the society, but that there are certain factors that hinder the effective use of radio for rural development. It therefore recommends, among, others, that radio stations in Nigeria should endeavour to use local dialects, especially when the radio programme is aimed at the rural dwellers and that there is the need to establish community radio stations that will be closer to rural dwellers. Key Words: Radio, Rural Communication, Rural Community and Development.