This study examines the impact of Insecurity on the Development of Small and Medium Enterprises (SMEs) in Nigeria using the Autoregressive Distributed Lag method. Results from the study indicate that insecurity in Kogi State remains a critical challenge, significantly affecting the region's socio-economic landscape. Issues such as terrorism, kidnapping, armed banditry, and communal clashes continue to threaten lives and property, particularly impacting Small and Medium Enterprises (SMEs). These businesses are highly vulnerable to violent attacks, especially in areas plagued by the activities of criminal groups and herdsmenfarmer conflicts. The persistent insecurity has led many SMEs to either scale back their operations or shut down completely, especially in regions where violence is most rampant. Therefore, the study recommends that the government must ensure that security spending is managed effectively to improve the security landscape within the state. This can be accomplished by prioritizing investments in local law enforcement, intelligence collection, and community policing initiatives. Furthermore, the government should consider publicprivate partnerships to finance security projects, thereby establishing a more comprehensive and sustainable strategy for safeguarding the state’s production capabilities and nurturing an environment favorable to SMEs.