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This study focused on religion as a tool for unity and faith, peace, and progress in southwest Nigeria. This study is qualitative and adopted a phenomenology design, primary data collection instrument consisting of interviews and ethnographic observations. The population consisted of all the citizens in southwest Nigeria and a sample consisted of 20 participants selected from religious groups. The analysis was issued based and focused on the use of the theme provided by the research questions of the study. Observation, and interviews were used to find out multifarious views on religion as a social institution. The paper further discussed the types of religions, the needs for religious activities, its impacts on people’s lives, both positive and negative. It was recommended that the issues of rewards and punishment that are established in every society tradition, norms, value, custom and constitution of every nation should be upheld, and the government should check the activities of religious leaders; also review the act that established religion as a social institution to pave way for unity, peace, and progress in Nigeria.
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