While previous studies have interrogated the motivations of Boko Haram and the role of security agencies in counterinsurgency, explanations of the escalation of Boko Haram attacks on Nigerian security agencies have received limited academic attention. This study re-examines the dynamics of counterinsurgency operations in Nigeria within the context of the fragile state thesis. It argues that fragility of relevant state institutions has compromised the military-led counterinsurgency operations by flipping out strategic intelligence to the terrorists, embezzlement of arms procurement funds, sabotage and deplorable welfare condition of combatants, among others. Thus, the relevant state institutions should be strengthened to proactively respond to the maladies bedeviling the military-led counterinsurgency operations in the North-East region.