Abstract The research is aimed at understanding the impact embraced by industrialization in terms of development. In this regard, many small scale industries were sampled, analysis of the data proved that most industries are raw materials and market oriented. Also, the problems of industrialization in the study area (Umunwarahu) includes: noise pollution, unemployment problem, inadequate infrastructural facilities, irregular power supply, and poor road network. Rural industries play an indomitable role in the economic transformation of nations, but unfortunately. The development of industries in the rural areas has experienced some problems partly due to poor financial investment on them or due to lack of some economic base potential. This has triggered the development of haphazard and uncompleted industries here and there. However, the researcher recommended that government should embark on enlightenment campaign so as to educate the rural people on the impact, and benefits derived from sitting or establishment of these industries.