Sound financial management of a state's security sector remains the key to efficient and effective security forces capable of responding to the citizens' legitimate security. The huge budgetary allocations for defence or military in Nigeria annually remain higher than budgets of all other West African states' defence/military operations combined together in all ramifications. But one would be dismayed that with the usual bogus defence budgets in Nigeria, the attendant effects on her political and socio-economic stability coupled with peace and security still fall far below ebb. The study therefore examines the reasons insecurity still persists in Nigeria despite huge budgetary allocations to defence and military spending on war against terror and insecurity in the last one decade, and implications for state politics, economy and national security. The study employed a progressive theory of public expenditure while it relies on both primary and secondary sources of data. The study in its findings reveals that despite huge spending or expenditures on military operations within the years, the security of the state remains deteriorating as a result of bad governance, corruption and non-transparent procurement activities, poor leadership, and lack of defence strategies among others; thereby creating some loopholes in national politics, economy and weakened national security respectively. The security situation remains worsening; Boko haram attacks in the northeast, armed banditry in northwest, kidnapping in all parts of the country, militancy in Niger Delta and Biafran agitation for secession in the country. The study, therefore, recommends that Nigerian government should endeavour to: shun corruption; ensure good governance, transparent procurement processes; and adopting defence strategies in compliance with global best practices towards ensuring a stable and secured society.
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