This study critically examined the socio-economic effects of artisanal crude oil refining (ACOR) on livelihoods (farming and fishing) activities in the Bsyelsa State, with a specific focus on the communities of Southern Ijaw, Nembe, and Sagbama Local Government Areas. Rooted in the theoretical framework of the Tragedy of the Commons, the research utilized a quantitative approach to analyze the relationship between ACOR intensity and community well-being. Data was analyzed using a one-way Analysis of Variance (ANOVA), followed by post hoc comparisons (Tukey's HSD) and homogeneous subset analysis to identify specific group differences. The findings provided strong statistical evidence that ACOR activity has a significant and detrimental effect on both livelihoods and household food security. The analysis revealed a critical "threshold effect," where the negative impacts on food security and livelihoods escalate dramatically once refining activities reach a certain intensity. The study concluded that the pursuit of short-term private gain through ACOR leads to the systematic degradation of shared resources—soil and water—resulting in the collapse of traditional livelihoods (farming and fishing) and creating a cycle of environmental and socio-economic vulnerability for the entire community. The results underscored an urgent need for interventions that combine environmental remediation with the promotion of sustainable, alternative livelihoods.