The Lake Chad region, which is an intersection of four countries, namely Cameroon, Chad, Niger, and Nigeria, has been a major battleground of violence and terrorism. Poverty is prevalent in the region – a situation which it has been argued is one of the factors accounting for the successful operation of Boko Haram. In the midst of limited economic activity, it is important to understand the psychological impact of the insurgency on the lives of displaced persons who have resettled in new communities. Sixty-seven refugees and internally displaced persons (IDPs) were interviewed from nine communities in Cameroon and Nigeria. Participants have been psychologically affected by loss of relatives and property, and even by displacement from their homeland. Also, limited economic opportunities in the region has manifested in an inability of the people to have access to income generating activities. The host communities have, however, provided support to the participants by accepting them as equal members of the society, and concerted efforts have been made to integrate them into the community. The study has implications for policy-making, in terms of governments and international partners exploring ways to create economic opportunities, so as to advance the lives of displaced persons in the region.