The World Bank has approved up to $12 million in performance-based funding for Nigerian states hosting internally displaced persons (IDPs), under a new federal intervention aimed at improving data collection, governance and long-term integration of displaced populations.
The funding is part of the Solutions for the Internally Displaced and Host Communities Project, which was approved on August 7, 2025, and will be disbursed only after states meet strict, independently verified benchmarks.
According to the project document, states must satisfy conditions outlined under Performance-Based Condition Two (PBC-2) before accessing any funds.
Performance-based disbursement model
The World Bank said disbursements will depend on verified progress in IDP registration, profiling and vulnerability assessments, with payments spread across three years and requirements increasing annually.
The funding allocation forms part of a broader $300 million concessional credit approved by the International Development Association (IDA) and signed between the World Bank and the Federal Government of Nigeria.
In the first year, participating Tier 1 and Tier 2 states are required to commence IDP registration and profiling in selected host communities and complete demographic and vulnerability assessments in at least two wards.
States that meet these benchmarks 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 assessments in at least two wards,” the document stated.
In the second year, only Tier 1 states will qualify for additional funding. These states must conduct intention surveys, stability assessments, and detailed analyses of the drivers and impacts of displacement.
Each Tier 1 state that completes these activities will receive an additional $500,000, the World Bank said.
Year three: 80% registration target
The largest tranche of funding will be released in the third year, when states are required to ensure that at least 80% of IDPs in host communities are registered and profiled.
States that meet this threshold will receive $500,000 each, bringing the total funding under PBC-2 to $12 million.
“Eighty 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,” the report added.
Additional conditions and safeguards
The agreement anticipates that data gaps on displacement-related vulnerabilities will be fully addressed by the fourth year, with no additional payments required at that stage.
Two other performance-based conditions are also included in the project, covering local government asset management and the long-term social and economic integration of IDPs, with additional funding tied to verified milestones.
Only states that meet minimum eligibility thresholds, including IDP population size and proportional share, will qualify for participation.
The World Bank warned that it may withhold, reallocate or cancel funds if states fail to meet agreed targets within specified timelines.
Repayment of the IDA credit will begin on January 15, 2031, with instalments due every six months on January 15 and July 15, ending on July 15, 2050.
