The economic potential of the tourism industry in Northern Nigeria is enormous. Tourism is an increasingly important source of income, employment and wealth in many countries and its rapid expansion has been considered as an interesting possibility for sustainable development, including poverty reduction, in Nigeria. However, the industry faces numerous challenges such as civil unrest, kidnapping for ransom and, recently, terrorism. This paper examines the consequences of kidnapping and insecurity on tourism with particular reference to its adverse effect on the Nigerian economy. It equally attempts to proffer measures aimed at eliminating the negative influences of insecurity especially kidnapping in Nigeria so as to increase the possibilities of increased international tourist arrivals. In the process, the analytical research methodology is applied and recommendations offered. Tourism development depends totally on the circumstances of lasting peace and security. Therefore, it is recommended that stakeholders in the tourism industry should adopt every available rational means to tackle these security risks in order to guarantee sustainable tourism in Nigeria.