The main objective of this paper is to discuss and analyze the implications of employees' Commitment on the productivity and performance of the Local Government Councils in Nigeria. The failure of Local Government system in the area of service delivery has made the citizens loose trust in the third tier level of government as an institution. The challenges facing Local Government Councils in Nigeria point towards the need for greater level of commitment, motivation and manpower development. The employee’s lack of commitment and poor attitude to work has been acknowledged to be a growing problem. There has been an increasing concern about making the Local Government Councils more productive and responsive to the needs and problems of the people at the grassroots. Factors such as la lack of well trained, visionary leadership, lack of training, bad management style, poor motivation and financial remuneration, Lack of cordial relationship between the employees and management, as well as poor monitoring and supervision are identified to be largely responsible and militating against the effort of the Local Government to achieve improved performance and render efficient services to the people. This paper therefore recommended that the general welfare and working conditions of the Local Government employees should be enhanced through effective leadership, training, supervision, communication, adequate motivation and reward to elicit commitment for greater output.