Abstract
Regional integration has been known for its inherent benefits to the states. As a concept of international relations, it has brought growth, development, political stability and order in almost all the states of the world that have formed one regional integration system to another. The study examined the achievements, challenges and prospects of African Union since its inception in 2002. In other words, the central thrust of study was to find out about the performance of AU in comparison with the defunct organization of African Unity. The study adopts liberal institutionalism as its theoretical framework of analysis. The study also made use of secondary source of data. The findings of the study as follows: financial problem, high level of unemployment, poor implementation of its programme, poverty, prevalence of dictators and corruption and bad governance. The study recommends the following: that African Union should double its efforts to eradicate corruption and bad governance in the African continent if they are to make progress towards elimination of poverty and African leaders should rise up to their responsibility of funding peacekeeping operations within African States without the involvement of the external bodies/states.
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