The act of terrorism and general insecurity situations in Nigeria require that solution be sought to safe-guard the nation against Balkanization and the educational system from collapse. Every nation's educational system is to help it overcome her peculiar problems. If this is a truism, then Nigeria's educational system is supposed to help her overcome the problem of terrorism that is shaking it to its foundation. It is in the light of this that this paper examines terrorism and insecurity in Nigeria and proffered moral, values and religious education as panaceas. In doing this, the paper discusses the central role that security plays in the development of nations for which Nigeria cannot be an exception. The paper further explains the concepts of terrorism and insecurity with instances of terrorist acts in Nigeria. The possible causes of insecurity in Nigeria such as bad governance, corruption, graduate unemployment, among others pointed out by other writers were highlighted. These factors were according to this paper symptomatic rather than causative. The paper therefore, queries false values, bad morality and misleading or inadequate religious education as cardinal causative factors and recommendations were given in this regard.