The objective of this paper is to find out the extent democracy and the rule of law has influenced good governance in Nigeria. The Political Economy approach, based on the Marxian concept of the dialectical materialism of the society, is adopted as the framework of analysis. Secondary data, generated through documents reading, were used for the analysis. Our findings indicate that in principle, democracy and the rule of law are elaborately provided in Nigeria, but in practice, good governance still eludes the country. Corruption, poverty, ignorance, diseases, inflation, declining productivity, maladministration, dictatorship, ethnicity and other primordial factors, as well as prevalent social vices are the road mines to good governance in Nigeria. Equitable distribution of resources, provision of qualitative education, economic restructuring of the society, freedom of the press and political reforms, among other recommendations, are fundamental for the enthronement of functional democracy and the rule of law for good governance in Nigeria
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