This study looks at the relationships between religion, democracy, and peace. It is based on this premise that this article examines how religion is used to consolidate democracy and promote peace in societies, using Nigeria as its framework of analysis. Using the qualitative method of analysis where emphasis is placed on primary and secondary documents, which involve articles, reports, and newspaper articles triangulating with key informant interviews (KIIs) and stakeholder analysis, the findings of this article suggest that religion plays a significant role in the consolidation of democracy and peace given its important place in advocating some principles and ideals of democracy, which involve equity, fairness, freedom, pluralism, respect for diversities, and defending minority rights, amongst others. However, challenges associated with the weaponization of religion to pursue selfish political agenda and interests by both religious and political elites in Nigeria has become more of a norm than what is expected between both variables. This has helped in the creation of a hostile and unstable political environment, and in the pervasion of democratic and political institutions and agencies responsible for promoting accountable leadership, good governance, representative governance, political interference, and repressive policies, limiting the rights and freedoms of citizens who continue to impede the enhancement of a strongly consolidated democratic culture and peace in transition democracies such as Nigeria. This article suggests the need for relevant actors to ensure that institutions of the state are strengthened to provide the dividends of democracy. This can be achieved by addressing the challenge of the negative use of religion by the elites to advance unholy political interests and agenda. It is also important to create machinery to address the structural problems that breed poverty; political, economic, and social exclusion; and human rights abuses, limiting political and electoral freedoms. Addressing these challenges also requires relevant stakeholders and actors to understand that the process is multi-pronged, which also requires acknowledging, accommodating, and accepting individual and group diversities and, above all, requires the patience and the political will of these actors to ensure its actualization. Addressing these concerns will significantly strengthen and enhance the consolidation of democracy and peace in fragile and transition societies.