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It was a revenge victory for Ajagba who lost to Goodall via a split decision at the Glasgow 2014 Commonwealth Games.
The Australian has now suffered his second loss of his career but first inside the distance.
Ajagba, 29, has now extended his professional record to 19-1 and his 14th career knockout win.
He rocked Goodall early in the fourth round with a right hand and a subsequent flurry of punches which forced the referee to step in.
The dominant win could push the Nigerian closer to a shot at one of the heavyweight titles.
He has won his last four bouts since losing to Frank Sanchez via unanimous decision in October 2021 on the undercard of Tyson Fury-Deontay Wilder III.
Goodall started the fight on the back foot, struggling with the longer reach from Ajagba.
The Nigerian was continually jabbing on the front foot as the Australian struggled for momentum.
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However, Goodall fought back in the second round, landing a three-punch combo before turning the tables and taking the front foot for a period.
Ajagba took control of the fight in the third round after he landed a right uppercut on Goodall, leaving the Aussie unsteady on his feet.
With the advantage, Ajagba landed more blows throughout the round as Goodall still looked shaky in his movement.
With Goodall clearly struggling, Ajagba stepped up the attack in the fourth round and a series of savages blows on the Australian saw referee Tony Weeks end the fight.
Ajagba won bronze at the 2014 Glasgow Commonwealth Games and gold at the 2015 All African Games.
He represented Nigeria at the Rio 2016 Olympic Games and reached the quarter-finals.
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