Despite the huge resources available and that had accrued to the Niger Delta Region for its development nothing seem to be on ground to justify such, hence the intervention of international donor agencies. The study examined the challenges confronting international donor agencies in the development of Delta and Edo states. The study adopted the ex-post facto research design. Data were acquired by administering questionnaire among the residents of study area using random sampling method and descriptive statistics was used to explain the frequencies of variables being expressed in percentages The findings of the study revealed that identified corruption and bad governance, political and ethnic interest in developmental projects, climatic factors, poor infrastructural foundations and the expanding insecurity as critical developmental challenges affecting the survival of projects and programmes in the oil producing states. The study recommends among others that International donor partners should be transparent in their local micro projects such as basic healthcare facilities, rural transportation, sanitation, water supply, education and electricity that have economic and social impact on the lives of people especially rural areas in Delta and Edo States.