The study assesses the effect of Boko Haram crisis on Economic activities in Yobe state. The terrorizing effect of the activities of the fundamentalist sect, Boko Haram on the socio-economic condition ofYobe states of Nigeria has become so devastating that some financial institutions and other business ventures have closed down in many areas, thereby causing relocation of non-indigenes to their own states. Itis based on the above that this paper seeks to find out the extent the Boko Haram insurgency has affected thesocioeconomic situation in Yobe state of Nigeria. During the course of the study, it was discovered that the insecurity situation in the state was so tense that even the indigenes have started to send their children and wards to the some parts of the country for their education. At the end, the paper proffered solutions to the problem.