Banditry in Benue State has led to widespread displacement, destruction of agricultural assets, and pervasive insecurity. These disruptions have reduced agricultural output, increased food prices, and deepened food insecurity across affected communities. This study examined the impact of banditry on economic development in Benue State. Anchored in Solow’s Neoclassical Growth Model and the Situational Crime Prevention framework, the study was guided by four research questions and corresponding hypotheses. A descriptive survey design was employed, drawing data from a stratified random sample of 368 adults out of a target population of 10,647, complemented by purposively selected key informants. The research instrument showed acceptable logical validity of 0.70 and strong internal consistency with a Cronbach alpha of 0.82. Data were analysed using descriptive statistics and one sample t tests in STATA 14 with a neutral test value of 3.0. The findings show that agricultural productivity was severely disrupted, with more than 75 percent of farmers abandoning at least one growing season, relying on lower yielding seeds, and experiencing major declines in output (M = 3.86, t = 7.82, p < 0.0001, Cohen’s d = 4.10). Small and medium scale enterprises faced significant operational strain, including shortened business hours, temporary closures, and revenue losses exceeding 25 percent (M = 3.60, t = 9.58, p < 0.0001, Cohen’s d = 0.50). Poverty levels increased sharply, with 68 percent of households falling below the national poverty line and 73 percent reporting declines in living standards (M = 3.69, t = 10.65, p < 0.0001, Cohen’s d = 0.55). Existing mitigation strategies were largely ineffective, as only one quarter of respondents perceived the Anti-Grazing Law as effective, and fewer than one third expressed confidence in community policing, vigilante groups, or relief interventions (M = 2.22, t = –12.58, p < 0.0001, Cohen’s d = –0.66). The study concludes that banditry remains a critical impediment to economic development in Benue State and underscores the urgency of coordinated and context specific interventions that reinforce security, protect livelihood systems, and support long term recovery.