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

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 conflict-affected regions of Northern Nigeria.

The approval, granted on August 7, 2025, will fund the Solutions for the Internally Displaced and Host Communities Project (SOLID). The initiative targets select Local Government Areas (LGAs) most severely impacted by conflict-driven displacement and is expected to directly benefit up to 7.4 million people, including about 1.3 million IDPs.

According to World Bank Nigeria, the project will adopt an integrated development strategy aligned with the country’s long-term development vision, aiming to address both the immediate needs and long-term challenges of displacement.

“We are glad to support this initiative which has a tremendous potential to help Nigeria in addressing development challenges associated with protracted displacement in a sustainable way,” said Mathew Verghis, World Bank Country Director for Nigeria. “The Project’s integrated approach… will ensure that IDPs and host communities can transition from dependency on humanitarian assistance to self-reliance and resilience, opening up better economic opportunities.”

Addressing a Growing Displacement Crisis

Ongoing conflict and insecurity in Northern Nigeria have displaced over 3.5 million people, straining local infrastructure and services in host areas. The influx has intensified competition for scarce resources, limited job opportunities, and increased vulnerability to natural disasters such as flooding. Many local governments are struggling to meet the needs of both residents and displaced populations.

The SOLID project builds on the Nigerian government’s initiatives, previous international interventions, and the earlier Multi-Sectoral Crisis Recovery Project (MCRP), which focused on short-term recovery efforts.

The new project will:

• Develop and maintain climate-resilient infrastructure.
• Promote social cohesion and community resilience through participatory planning and economic cooperatives.
• Support livelihoods for both IDPs and host communities to boost economic activities.
• Strengthen institutions to manage the demographic pressures of displacement.

Task Team Leaders Fuad Malkawi and Christopher Johnson emphasized that SOLID will tackle infrastructure gaps and service delivery challenges, while targeted livelihood support will enable sustainable economic outcomes and a shift from crisis response to stability and inclusive growth.

Nigeria’s Debt Position with the World Bank

The approval comes amid rising borrowing from the World Bank. As of March 31, 2025, Nigeria’s total debt to the institution stood at $18.23 billion, up $420 million from December 2024.

This growth was driven mainly by increased borrowing from the International Development Association (IDA) — the concessional arm of the Bank — which 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) remained steady at $1.24 billion.

The World Bank now accounts for 39.7% of Nigeria’s total external debt stock, which reached $45.98 billion in Q1 2025, and 81.2% of total multilateral debt.

With this financing, Nigeria aims to not only address immediate humanitarian concerns but also create long-term economic opportunities in regions hardest hit by conflict. The second half of the year will be crucial in determining the project’s implementation pace and its potential impact on both IDPs and host communities.