Since 1999, Nigeria has witnessed an uninterrupted democratic experiment with many challenges. With the installation of multi-party democracy in Nigeria, the era of military authoritarian regimes were over as Nigerians were looking forward to a free society characterized by social justice, economic growth and free, fair and credible electoral process. But today, democracy sits on the horn of a dilemma in Nigeria due to massive political corruption by the leaders. Free and fair election which is one of the features of true democracy has eluded Nigeria since the advent of the country’s nascent democratic dispensation. The behavior of the political leaders has cast doubt on any consolidation of democracy in Nigeria. This paper gives a comprehensive definition of political corruption and democratic consolidation, and highlights the nature of political corruption in Nigeria. The paper also examines the impact of corruption on the consolidation of democracy under the prevailing socio-economic challenges in Nigeria. Finally, the paper concludes with the advice that for there to be democratic consolidation, there must be massive investment in the provision of the basic needs of the Nigerian people.