World Bank Approves $300 Million to Boost Support for IDPs and Host Communities in Northern Nigeria

The World Bank has approved a $300 million financing package for Nigeria to strengthen resilience and expand access to essential services for Internally Displaced Persons (IDPs) and their host communities in Northern Nigeria. The approval, granted on August 7, 2025, will fund the Solutions for the Internally Displaced and Host Communities Project (SOLID), targeting selected Local Government Areas (LGAs) hardest hit by conflict-driven displacement.

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Project Targets and Scope

According to the World Bank Nigeria office, the SOLID project aims to benefit up to 7.4 million people, including about 1.3 million IDPs. The initiative will adopt an integrated development strategy in line with Nigeria’s long-term development vision and the National IDP Policy.

The Bank’s statement noted that Northern Nigeria has been severely affected by ongoing conflict and insecurity, which have displaced more than 3.5 million people. This large-scale displacement has put heavy pressure on local infrastructure, public services, and natural resources in host communities.

The influx of displaced populations has intensified competition for scarce resources, reduced livelihood opportunities, and heightened vulnerability to natural disasters such as flooding. Many local governments are struggling to meet the needs of both residents and IDPs, leading to rising tensions and social strain.

Building on Previous Initiatives

The SOLID project will expand on the Nigerian government’s ongoing efforts and international interventions, particularly the earlier Multi-Sectoral Crisis Recovery Project (MCRP), which focused on short-term recovery measures in crisis-affected areas.

The new initiative will prioritise:

• Climate-resilient infrastructure to protect communities from environmental risks.
• Social cohesion through participatory planning and the creation of economic cooperatives.
• Livelihood support for both IDPs and host populations to boost economic activity.
• Institutional strengthening to improve local governments’ capacity to handle demographic pressures caused by displacement.

Mathew Verghis, World Bank Country Director for Nigeria, said the project’s integrated approach would help transition IDPs and host communities from reliance on humanitarian assistance to self-reliance and resilience, ultimately expanding economic opportunities.

Implementation Approach

The World Bank emphasised that the project will be implemented through a coordinated, community-driven approach involving federal, state, and local government structures. Collaboration with international development partners will also be key to ensuring efficiency and sustainability.

Task Team Leaders Fuad Malkawi and Christopher Johnson described the initiative as “central to addressing the enduring displacement crisis” in Northern Nigeria. They stressed its importance in closing infrastructure gaps, improving service delivery, and enabling both displaced persons and host communities to achieve long-term stability.

They further explained that targeted livelihood interventions would help beneficiaries achieve sustainable incomes, thereby moving the region from a cycle of emergency response towards inclusive growth and resilience.

Economic Context and Debt Implications

This financing comes at a time when Nigeria’s debt to the World Bank has been steadily increasing. Data from the Debt Management Office (DMO) shows that as of March 31, 2025, Nigeria owed the Bank $18.23 billion, up from $17.81 billion in December 2024 — an increase of $420 million in just three months.

The rise was largely driven by increased borrowing from the International Development Association (IDA), the concessional lending arm of the World Bank. IDA loans rose from $16.56 billion in December 2024 to $16.99 billion in March 2025. Loans from the International Bank for Reconstruction and Development (IBRD), the Bank’s non-concessional window, remained steady at $1.24 billion.

The World Bank Group now accounts for 39.7% of Nigeria’s total external debt stock, which stood at $45.98 billion in Q1 2025. This marks a slight increase from 38.9% in December 2024 and 36.4% at the end of 2023.

Further analysis shows that the World Bank represents 81.2% of Nigeria’s total multilateral debt, which rose to $22.43 billion in the first quarter of 2025, up from 79.8% at the end of 2024.

Potential Impact on Northern Nigeria

The SOLID project’s integrated strategy is expected to significantly improve living conditions in areas struggling with displacement. By providing infrastructure, strengthening governance, and promoting livelihoods, it aims to create a stable and inclusive socio-economic environment that benefits both displaced and host populations.

The emphasis on climate resilience is particularly important, given the environmental challenges faced by Northern Nigeria, including desertification, flooding, and unpredictable rainfall patterns. By preparing communities to withstand such shocks, the project could also help reduce future displacement risks.

If successfully implemented, the project could serve as a blueprint for addressing protracted displacement crises not only in Nigeria but also in other conflict-affected regions.

In summary, the World Bank’s $300 million financing represents a major step towards addressing the humanitarian and developmental challenges facing Northern Nigeria’s displaced populations and their hosts. While the initiative is ambitious, its success will depend on effective coordination between all levels of government, strong community participation, and consistent policy support to ensure that the benefits reach those who need them most.