Is there a link between poverty and terrorism in Nigeria? This paper is developed to answer this question. Using the frustration-aggression and horizontal inequalities explanation of violence, the paper argues that the paradox of wealth and poverty has created grievances that have undermined the stakeholder interests of citizens in the state, the solidarity and identity between citizens and leaders, and the social responsibility roles of citizens. This, the paper notes, has made citizens vulnerable to mobilization and recruitment for violence against the state, just as it has made them withdraw cooperation with and obedience from the state. Evidence of this is the complaint by security forces that cooperation of citizens in the fight against terrorism is low or poor. The paper thus concludes that although poverty may not have created terrorists or that there is no causal relationship between poverty and terrorism in Nigeria, poverty has created conditions for terrorism to thrive in the country. In this regard, it is critical for the Nigerian government to bring poverty reduction into its anti-terrorism engagement strategy. Budgetary reforms to ensure pro-poor budgeting and vigorous anti-corruption programmes will be crucial in achieving this. But the challenge might be the culture of impunity and politics which is characterised by the pursuance of private interests against the public good.