This paper critically investigates the complex interrelationships that exist between corruption, democratic governance, and underdevelopment in Nigeria's Niger Delta. Even after democracy was established in 1999, there are still ongoing socioeconomic problems and escalating levels of militancy in the Niger Delta region. This study investigates the relationship between democratic government, militancy, and underdevelopment in the Niger Delta, using a qualitative research methodology based in political economy theory. This theory highlights how, in post-colonial situations, political institutions, economic policies, and social outcomes interact. The study is important because it examines how democratic processes have worsened underdevelopment and encouraged militant activities. These mechanisms are beset by systemic corruption and inefficient policy execution. The article examines the political and economic mismanagement that Nigeria's democratic system entails, and its findings reveal the government's shortcomings in attending to the concerns and demands of the Niger Delta populations. It reveals the methods by which elected officials subvert development money and prolong poverty by abusing democratic structures for their own personal gain using a thorough case study approach.