Terrorists set fire to Central Primary School in Dekara community, Borgu Local Government Area of Niger State.
Locals raised and paid ₦10 million after the group demanded the money to prevent violence.
The terrorists still came from the Kainji Lake National Park area on Wednesday and burned the school buildings.
Residents hoped the payment would keep everyone safe.
Instead, the incident left the community without its main primary school and disrupted classes for the children.
Security forces have not issued any statement on the event so far.
This case adds to similar reports from the area where armed groups operate near the park.
Communities continue to face pressure from these demands while trying to protect daily life and education.
