Nicaragua is often held up as an exception within the Central American panorama of criminal violence, widely presented as the safest country in the region due to its particular revolutionary legacies, the (supposed) absence of transnational gangs and drug-trafficking organisations, and the National Police's representation as an efficient and professional force. This commentary proposes an alternative reading of Nicaragua's contemporary political economy of violence in order to reveal the profoundly misleading nature of this prevalent view. In particular, it highlights how Nicaragua is governed through a particular political ‘settlement’ underpinned by drug trafficking, police and judicial corruption, as well as ‘mafia state’ governance. These factors have coalesced to establish a highly efficient and engrained ‘narco-state’ whose undoing is unlikely in the short term.