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World Bank approves $300 million loan for Internally Displaced Persons in Nigeria 

By Esther
Updated August 11, 2025 4:28 pm
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The World Bank has approved $300 million in financing to help Nigeria strengthen resilience and expand access to essential services for Internally Displaced Persons (IDPs) and their host communities in the country’s conflict-affected northern region.

In a statement on Monday, the Bank confirmed the approval—granted on August 7, 2025—for the Solutions for the Internally Displaced and Host Communities Project (SOLID). The initiative will target select Local Government Areas (LGAs) most impacted by conflict-driven displacement, benefiting up to 7.4 million people, including about 1.3 million IDPs.

Conflict and insecurity in Northern Nigeria have displaced over 3.5 million people, placing heavy pressure on local infrastructure and services. The influx of IDPs has intensified competition for scarce resources, limited livelihood opportunities, and increased vulnerability to natural disasters such as flooding, while local governments struggle to meet the needs of both displaced populations and residents.

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Building on the earlier Multi-Sectoral Crisis Recovery Project (MCRP), the SOLID initiative will focus on:

        Developing climate-resilient infrastructure.

        Strengthening social cohesion and community resilience through participatory planning.

        Supporting livelihoods for both IDPs and host communities.

        Enhancing institutional capacity to manage demographic pressures from displacement.

“We are glad to support this initiative, which has tremendous potential to address the development challenges associated with protracted displacement sustainably,” said Mathew Verghis, World Bank Country Director for Nigeria. He noted that the project’s integrated approach, aligned with the National IDP Policy and the Federal Government’s long-term vision, aims to help IDPs and host communities transition from dependence on humanitarian aid to self-reliance and better economic opportunities.

The project will be implemented through a coordinated, community-driven approach involving all tiers of government and strong collaboration with international stakeholders. Task Team Leaders Fuad Malkawi and Christopher Johnson described it as critical to bridging infrastructure gaps and tackling service delivery challenges in already strained host communities.

Debt Context

Nigeria’s debt to the World Bank stood at $18.23 billion as of March 31, 2025—up $420 million from December 2024—driven mainly by higher borrowings from the International Development Association (IDA). The World Bank now accounts for 39.7% of Nigeria’s total external debt and 81.2% of its multilateral debt, underscoring its central role in the country’s financing framework.

Credit: Nairametrics


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