This project is on Traditional institution and community development in Nigeria with its case study on Mbaitolu local government. The extent of which the traditional institution can be regarded as a veritable instrument for community development has been a subject of debate among Nigeria. This work is an over view of the traditional institution in community development. This work contents that traditional institution in Nigeria right from the colonial era has served as an instrument for exploitation of the community development. I consulted textbooks and had detailed discussion with selected members of my community. After the research, I discovered that, before the coming of the Europeans, Mbaitolu local government and area had an existing traditional constitution and its people contributed immensely towards the development of their community and helps to develop some parts in Nigeria.