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The World Bank has set aside up to $12 million under a new federal project for Nigerian states hosting camps for internally displaced persons (IDPs), with funds to be released only after strict performance targets are met.
The funding is part of the Solutions for the Internally Displaced and Host Communities Project, approved on August 7, 2025.
Under ‘Performance-Based Condition Two’ contained in a document, the World Bank said states must meet verified benchmarks for data collection, governance, and the integration of displaced persons before receiving any disbursement.
According to the project document, IDPs living in host communities who successfully register and profile themselves will receive payments spread over three years, with requirements increasing each year. Payments will be made only after results are independently verified.
The allocation forms part of a $300 million concessional credit approved by the International Development Association and signed between the World Bank and the government of Nigeria.
In the first year, participating Tier 1 and Tier 2 states must begin IDP registration and profiling in selected host communities and complete demographic and vulnerability assessments in at least two wards. States that meet this requirement will receive $250,000 each.
“Participating Tier 1 and Tier 2 States launched registration/profiling of IDPs in selected host communities, and completed: comprehensive demographic and vulnerability assessment in at least 2 wards. Each state which completes the assessment and surveys in the selected wards will receive $0.25m of the PBC allocation,” the report read.
In the second year, Tier 1 states must conduct intention surveys, stability assessments, and detailed analyses of the causes and impacts of displacement, and completion of these activities qualifies each Tier 1 state for an additional $500,000, according to the document.
The largest payout comes in the third year, when states must ensure that 80% of IDPs in host communities are registered and profiled. States that meet this target will receive $500,000 each, bringing total funding under this condition to $12 million.
“80 percent of IDPs in host communities in all participating Tier 1 and Tier 2 states are registered and profiled. Each participating state that completes all the above will receive $0.5m of the PBC allocation,” the report added.
The agreement anticipates that data gaps on displacement-related vulnerabilities will be fully addressed in the fourth year, with no additional payments required.
The agreement also includes two other performance-based conditions tied to local governments’ asset management and the long-term integration of IDPs, with additional funding attached to verified milestones.
Only states that meet eligibility thresholds on IDP population size and percentage share can participate.
The World Bank said it may withhold, reallocate, or cancel funds if states fail to meet agreed targets within set timelines.
The loan will be repaid starting on January 15, 2031, and continuing every six months on January 15 and July 15 until July 15, 2050.
