The different agitations and goals of the perpetrators of terrorism in Nigeria seem to define the root causes of terrorism in Nigeria. This study provides an in-depth economic analysis of terrorism in Nigeria, it linked terrorists costs-benefits matrices (as incentive to violence) to the root causes of terrorism such as; economic deprivation, socio-economic conditions, and population group with different identities. The effects of terrorism on Nigeria progress accounts for the dislocation and distortions of both industry and education in the affected parts of the country (this has also re-enforced terrorists activities). The study recommended among others that counter-terrorism measures must therefore take into account these root causes of terrorism in Nigeria with the view of making the price of terrorism and the opportunity costs of terrorism very high, so as to reduce the incentive to terrorists activities in Nigeria.
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