This study aimed to examines the socio-economic implications of banditry on smallholder farmers in Niger State. The study aims to explore the causes and effects of banditry on rural communities and smallholder farmers, assess income losses, evaluate farmers' livelihoods, and examine coping strategies used to address these challenges. The data were analyzed using descriptive statistics, multiple regression and livelihood status index model. The findings of the study shows that banditry is driven primarily by land conflicts (19.8%) and unemployment (18.5%), presence of weak governance (16.8%) and farmer-herder conflicts (15.8%). Also have a negative impact on smallholder livelihoods by reducing farm productivity (4.39), loss of farmland and decreased farming activity (mean = 4.27). Furthermore, the multiple regression analysis explained 67% of the variation in income losses, showing that factors such as road blockades, market restrictions, and physical harm have a statistically significant negative impact on farmers' earnings. The livelihood status of smallholder farmers in the study area reveals that majority face significant challenges in sustaining their households, with 59.29% classified within the low livelihood status range, 24.29% of the farmers are in the moderate livelihood category, with a smaller portion (12.86%) facing very low livelihood conditions, which underscores a struggle with food insecurity and poverty. Only 3.57% of the farmers are categorized as having a high livelihood status, reflecting better economic security. In response to banditry, smallholder farmers in rural Niger State employ several strategies to mitigate its impact on their livelihoods such as reporting criminal activities to security agents (4.87), engaging in vigilante groups (4.55) and avoiding farm activities during bandit attacks (3.96).The study recommended that to improve the financial security of smallholder farmers, government and development organizations should implement programs that provide financial support, access to inputs, and improve farmers' income-earning capacity through skills development and value chain interventions.