National transformation in Nigeria is advocated for structural development. Usually, structural development leads to changes in all sectors of the economy. However, in most cases structural development can only be possible if the security situation in the country is handled with all seriousness. But in the situation where security issues such as insurgence, theft, kidnapping, abduction, to mention but a few are handled with lukewarm attitude, transformation and structural development will be aborted. This is because when there is security threat in the country, money meant for such developments are often diverted into fighting such threats in the country. Therefore, the paper x-rays the causes of insecurity in Nigeria, the cost and the effects of insecurity and security challenges and national transformation. The paper recommended that strong and good governance, prudent financial management, and legal system devoid of corruption, nepotism and impunity should be embraced in the country if national transformation is to be sustained