This review examines leadership dysfunction through the lens of organizational and social psychology, integrating insights from transformational leadership theory, social identity theory, institutional theory, and moral psychology. Using a narrative review approach, the study synthesizes empirical and theoretical literature published between 2000 and 2025. The findings reveal that leadership dysfunction is a multidimensional phenomenon driven by individual traits such as narcissism and moral disengagement, socio-cultural dynamics such as ethnicity and power distance, and institutional weaknesses including lack of accountability and transparency. The study further highlights psychological mechanisms such as cognitive biases, groupthink, and social dominance that reinforce dysfunctional leadership practices. The consequences include reduced economic development, low organizational performance, erosion of public trust, and increased insecurity. The study concludes by proposing a multi-level intervention framework that integrates leadership development, institutional reforms, and behavioral change strategies. The paper contributes to the growing literature by offering a psychologically grounded explanation of leadership failures in Sub-Saharan Africa and providing actionable recommendations for policy and practice.