The increasing security challenge in contemporary Nigeria seems to have defied all known attempts to curb it. From Boko Haram/Banditry in the North, Niger-Delta Militancy in the South-South, Indigenous People of Biafra Agitation in the South-East, to Oduduwa Congress agitation in the South-West, to the nationwide END SARS Protest of 2021, Nigeria kept experiencing one form of security challenge after another. The chapter examines the nexus between democracy, corruption, poverty, and the rising trend of terrorism in Nigeria. The aim is to explore the causative factors for this hitherto unknown terrorist act in the Nigerian polity. Using Interdisciplinary quantitative and qualitative methodologies of primary and secondary data, the chapter observes that, with the arrival of democracy and democratic governance, the people’s expectations for good and impactful government were high. However, what came to reality was an apparent and absolute disregard for the democratic dividends for which the people had hoped. Consequently, this misrule manifested in the backdrop of ineffective, resourceful and strategic leadership failure, a high level of corruption among government officials, and impoverishment of the masses. In reaction to this injustice, the people took to self-survival pursuits such as armed robbery, ethnic agitations, banditry, and kidnappings, resulting in acts of terrorism being witnessed all over Nigeria. To this end, the chapter reveals that an all-inclusive, dividend-yielding democratic government is the panacea to curbing acts of terrorism in Nigeria.