Insecurity in Nigeria has expanded beyond localized conflict to become a structural constraint on industrialization and economic development. This study examines how terrorism, banditry, kidnapping, and ethno-religious violence affect industrial output, investment flows, and human capital utilization. Using a mixed-methods design that combines secondary time-series data and key informant interviews with industrial workers and managers in the North-East and North-West, the study finds that insecurity reduces domestic capital formation, deters foreign direct investment, increases production costs, and displaces industrial capacity. Approximately 60% of industries in the North-East have shut down due to insecurity. The findings suggest that without targeted security governance and industrial protection policies, Nigeria’s industrialization agenda will remain stalled. The paper concludes with evidence-based recommendations for restoring industrial confidence.

Keywords: Insecurity, Industrialization, Economic Development, Nigeria, Foreign Direct Investment, Manufacturing