This study examined the African Peer Review Mechanism and good governance in Africa. The research is premised on the background that the goals of African Peer Review Mechanism are democracy and good governance as pre-conditions for development. Three research questions that transcend to three hypotheses were formulated to act as a guide in realizing the objectives of the study. How has African Peer Review Mechanism fared in improving good governance in Nigeria, what factors impede the effective implementation of good governance in Nigeria and what measures can be adopted to improve good governance in Nigeria? The research was anchored on institutional theory. The data for the research were sourced mainly from documented works. The findings of the study revealed that development can only thrive through inclusive governance, which can be achieved with strong political will and basically, how to decentralize and domesticate the entire African Peer Review Mechanism process in spite of existing lack of capacity to mainstream the national programme of action. The study recommended among others things that; there must be adequate political buy-in at all levels of government to ensure the vital political will to drive and sustain the process.