Previous literature has overlooked the connection of neocolonialism and terrorist activities in Nigeria. This research explores how neocolonialism stimulates corruption and bad governance in postcolonial states like Nigeria, and how corruption and bad governance in turn have prompted a societal menace in which terrorist activities have thrived in Nigeria. The study highlights that in the case of Nigeria there is no conceptual difference between bad governance and corruption. Thus, corruption and bad governance occurs alongside. The study undercovers the underlying effects of neocolonialism on the Nigeria state as well as how corruption and bad governance deters economic development, social inclusion, and the achievement of social contract. The study modifies the previous main assumption that only a linear causal relationship exists between neocolonialism, corruption, bad governance, and terrorist activities, by revealing that there is also a reverse order causality relationship among the interrogated variables, neocolonialism, corruption, bad governance, and terrorist activities.