The World Bank has earmarked up to $12 million in performance-based financing for Nigerian states hosting Internally Displaced Persons (IDPs), under a new federal initiative aimed at improving data on displacement-related vulnerabilities and strengthening long-term integration efforts.
The funding is part of a broader $300 million concessional credit approved by the International Development Association (IDA) for the Solutions for the Internally Displaced and Host Communities Project, signed between the Federal Government of Nigeria and the World Bank last year.
According to the project document, access to the funds is strictly tied to measurable results.
“States will be paid only after independently verified results are achieved,” the report stated.
Performance-Based Condition Two, participating Tier 1 and Tier 2 states must meet strict benchmarks in registering and profiling IDPs living in host communities.
Disbursement is spread across three years, with escalating requirements.
In the first year, states must launch IDP registration and profiling in selected host communities and complete comprehensive demographic and vulnerability assessments in at least two wards.
“Each State which completes the assessment and surveys in the selected wards will receive $0.25m of the PBC allocation,” the document noted.
By the second year, Tier 1 states are required to conduct intention surveys and stability index assessments in areas targeted for local integration. They must also analyse the root causes of displacement, including socioeconomic impacts, migration pressures, and risks linked to trafficking and smuggling.
Completion of these tasks qualifies each Tier 1 state for an additional $500,000.
In the third year, the most significant payout is tied to registering and profiling 80 per cent of IDPs across participating states.
“Each Participating State that completes all the above will receive $0.5m of the PBC allocation,” the report added.
By the fourth year, data gaps on displacement-related vulnerabilities are expected to be fully addressed, although no further payments are attached to this stage.
Beyond IDP data management, the agreement outlines two other performance-based conditions.
Performance-Based Condition One focuses on asset management. Tier 1 states must issue asset inventory reporting guidelines and maintenance standards aligned with international benchmarks. Selected local governments are also required to submit asset inventory reports and operations and maintenance (O&M) plans for approval.
Up to $9 million is allocated for this condition, with states receiving $500,000 at each verified stage.
Performance-Based Condition Three targets the long-term integration of IDPs into development processes. States must support IDPs’ access to basic documentation such as:
Birth and marriage certificates
Educational records
Residence identification
Travel documents
Driving licences
States that complete this stage are eligible for $1 million each.
Further requirements include legalising land and property ownership for IDPs, establishing monitoring systems to manage host-community tensions, and launching at least three development programmes focused on skills, livelihoods, or infrastructure. A total of $12 million is allocated under this condition.
Only states meeting strict criteria can participate. Tier 1 states must host over 150,000 IDPs, accounting for more than 2 per cent of their population. Tier 2 states qualify with at least 100,000 IDPs or an IDP share above 1 per cent.
States must also sign subsidiary agreements with the Federal Government and adopt approved security management plans.
“All performance claims must be backed by eligible expenditures and verified by independent agents acceptable to the World Bank,” the agreement stated.
Failure to meet timelines allows the Bank to withhold, reallocate, or cancel funds.
The $300m credit is structured as long-term concessional financing, with principal repayments beginning after a grace period and continuing on a semi-annual basis.
The World Bank Group remains Nigeria’s largest external creditor, accounting for $19.39 billion of the country’s debt—about 41.3 per cent of total external obligations.
This includes $18.04bn from the IDA and $1.35bn from the International Bank for Reconstruction and Development (IBRD).
