The concept of democracy ought to be approached by examining its essentials. Democracy expresses both principles and ideals. That is, principles, which those who believe in democracy wish to be given practical expression in the laws and institutions of the society; and ideals which provide goals toward which man in society should constantly aspire for the betterment of the society. From the fore-going, the focus of this paper shall not only be on the definition of democracy alone, but rather on the essence and significance of the rule of law on which the practice of democracy as a political ideology and system stands and rests. Meaning that, it is to thematise that without an implementation of a functional rule of law, such democratic system becomes a sham and pointless. And for proper insight, the methodology adopted by the paper shall be purely expository, critical and analytical. Conclusively, the paper provides the variables for the way forward for Nigeria.