Constraints on the development of tourism are enormous. It is observed that violent, crimes, civil unrest, kidnapping for ransom and terrorism bedevil Nigeria today and pose serious challenge to the peace and stability of the nation’s macroeconomic environment. The study sought to ascertain how insecurity affects hotel patronage. On the other hand, the work intends to determine how insecurity affects foreign investors in tourism activities. Primary and Secondary sources of data were used for the study. Recorded information from libraries and the internet were reviewed and adopted for the study. The study reveals that insecurity had a significant negative effect on hotel patronage (r = 0.879; F = 1727.670; t = 41.565; p < 0.05). Insecurity had significant negative effect on foreign direct investment in tourism (r = 0.761; F = 697.162; t = 26.404; p < 0.05). It was recommended that strong policy stance must be taken to address the state of insecurity in Nigeria so as to attract more tourists and foreign direct investors to ensure sustainable economic growth and equitable development across the country.