Nigeria’s growing democracy has been undermined by high level of corruption in all facets of Nigerian political system. Corruption is the abuse of bestowed power or position to acquire a personal benefit. Corruption makes democracy dysfunctional, especially when it is institutionalized. Democracy is supposed to be a leveller when it concerns dividends of democracy. A situation where only the elites and a favoured few are seen to be enjoying its dividends and the large majority who actually did the voting to elect the leaders continue to wallow in poverty; with lack of infrastructure is an invitation to chaos. The spate of corruption in Nigeria has found expression not only in public offices and institutions but other critical social milieu namely, the family, schools, places of worship, electioneering activities. This study is a theoretical analysis of the concept and context of corruption and its effects on democracy in Nigeria.