The study on the nexus between Boko Haram, causes and its effect on Nigeria economy examines the causes of BokoHaram and its effect on Nigeria economy. In as much as poverty is acclaimed to be major cause of Boko Haram, its progenitors capitalized on it to fan the embers of its recruitment thereby deriding Nigeria's economy. The recruitment of the youthful population was for them to see that they have magic wand for their emancipation. However, the analysis of various economic indices is seen to lean heavily on other indicators which aid the recruitment drive of Boko Haram against the state. The disaggregation of various economic indicators has also tilted towards other factors aside poverty as the reason for terrorism. The period of boom in Nigeria economy was mismanaged which wasfuelled by the trajectory of successive misrule over the years which also failed to put in place structures for economic growth. These theories are examined as we employ qualitative and descriptive research approach to understand the nexus between the causes of Boko Haram and its effect on Nigeria economy. The study explored various theories and theoretical discussin the literature in this regard. The study discovers that causes of Boko haram are multivariate and their effect includes ideology, Islamic fundamentalism, economic, social, poverty and religious bigotry.The result of the research reveals that ideology and religious fundamentalism are sine qua non to the effect by Boko Haram destructive tendencies against Nigeria state and central to the movement's long existence.The paper therefore recommends among others reorientation of the youth, empowerment of the impoverished and synergy among the security agencies.