Nigeria is currently engaging the World Bank for financial assistance to address the challenges faced by internally displaced persons (IDPs) and their host communities.
The request is for a loan of $500 million to fund the Solutions for the Internally Displaced and Host Communities Project.
According to details provided by the Washington-based lender, this initiative is designed to significantly enhance access to resilient and inclusive basic services and economic opportunities in Northern Nigeria, a region profoundly affected by displacement.
Recommended reading: FG in talks with World Bank for $1.5 billion loan, contemplates tapping domestic dollar savings
About the Loan Project
The Solutions for the Internally Displaced and Host Communities Project, slated for approval on April 8, 2025, represents a targeted effort to improve the lives of millions affected by internal displacement due to conflict, violence, and climate challenges.
The Federal Ministry of Budget and Economic Planning will act as the borrower for Nigeria, while the National Commission for Refugee Migrants and Internally Displaced Persons and the North East Development Commission are the implementing agencies.
A document from the Washington-based lender read:
- “The proposed project will utilize a three-pronged approach to develop sustainable solutions for IDPs and host communities in Northern Nigeria.
- First, the proposed project aims to provide tailored solutions for each of the targeted states and communities, recognizing that each internal displacement situation is specific and localized, with conflict, violence and/or climate challenges presenting a different level and set of vulnerabilities for host communities.
- “Gender, age, and special needs of individuals also play a role, as well as the length of displacement, number of times displaced and other factors. Thus, responses will be adapted to address the specific needs of vulnerable populations within displacement-affected states and communities. Second, the proposed project will follow a “People-in-Place” approach, integrating the needs of the people and the impacts on the place where they settle.
- “Project activities will aim to improve the provision of infrastructure and basic services as well as livelihood opportunities in an integrated way, moving beyond capital investments to supporting operational improvements and sectoral reforms, and fostering income-generating opportunities within host communities.”
The Issue of Displacement in Northern Nigeria
According to a review by a World Bank team, Northern Nigeria, particularly the states of Borno, Adamawa, and Yobe, has witnessed the highest numbers of IDPs, mainly due to the ongoing conflict involving Boko Haram and other factors such as banditry and farmer-herder conflicts.
Borno State alone hosts nearly 1.7 million IDPs, which is over a quarter of its total population and almost half of the total IDP population in Northern Nigeria.
The situation is further compounded by the weakening of poverty reduction efforts due to these conflicts and increasing climate shocks, making Nigeria one of the countries with the largest and fastest-growing IDP populations worldwide.
These challenges have significantly impacted the economic and social fabric of Northern Nigeria, with displacement affecting over 3.5 million people.
The World Bank’s intervention through the requested loan aims to mitigate these effects by fostering economic opportunities and improving access to basic services, thus contributing to a more stable and prosperous future for IDPs and their host communities in Nigeria.
