This study examines the effectiveness of military operations funded by defence budget in combating terrorism. It analysed the allocation of resources, strategic planning, and operational outcomes to assess the impact on counter terrorism efforts across Nigeria. Qualitative survey design was adopted for the study while thematic content analysis was used. The study was anchored on the Resource-Based Theory (RBT). This study concludes that terrorism/insurgencies bear both military and political goals. The study concluded that while the defence budget is significant to the security of lives and properties across the country, security funding should be redirected towards addressing the major sociological issues like youth unemployment, poverty, religious intolerance, poor governance, corruption and sundry that led to the spread of terror groups across the country. Hence, the study is premised that defence budget increment alone is not a viable solution to terrorism/insurgency in Nigeria but a collective approach that embodies major social, economic and political lapses in the country. It is in view of the foregoing, that this study recommends that while government increase defence budgets to burst improvement of the military capacity to contain terrorism/insurgency, there is the need to also funnel resources towards addressing specific sociological issues that weakened the institutional capacity of the Nigerian state to contain security breaches across the country.