Before the advent of the Europeans in Africa, societies in Nigeria had evolved various systems of traditional political institution based on the peculiarities of their ethnic nationalities. These institutions had full executive, legislative and judicial powers, exerted sovereign control over their subjects and engaged in the mobilisation of their people for developmental purposes within their areas of jurisdiction. Using historical descriptive methodology, this paper puts into proper historical perspective, the roles of traditional rulers in Nigeria during colonial rule. This paper uses Owa of Idanre as a case study and posits that until 1976, traditional rulers controlled local governments in Nigeria, but reforms have since relegated them to a mostly ceremonial role. This paper make bold to argues that while few of the traditional rulers during this period collaborated with the colonialist to further the economic interest of the Europeans in their various domains, their contributions to the socio-economic development of their various communities however cannot be over-emphasised. As such, this paper submits that the place and roles of traditional rulers be accorded proper recognition and definition respectively in the Nigerian constitution in order to help tackle the various socio-political and economic challenges facing the country.