January 21, (THEWILL) — Nigeria has secured a 12 million dollar performance-based funding window from the World Bank to support states hosting internally displaced persons. This initiative is tied to verified reforms in data collection, governance, and community integration under a new federal project.
The funding is a component of the Solutions for the Internally Displaced and Host Communities Project, which was approved on August 7, 2025, as part of a 300-million-dollar concessional credit from the International Development Association to the Federal Government.
THEWILL reports that under the performance-based condition two, participating states will only receive disbursements after meeting strict benchmarks verified by independent assessors.
The project document stipulates that IDPs living in host communities who successfully register and profile themselves will benefit from payments spread over three years, with performance requirements increasing annually.
In the first year, Tier 1 and Tier 2 states must commence IDP registration and profiling in selected host communities and complete demographic and vulnerability assessments in at least two wards. States that meet this threshold will receive 250,000 dollars each.
The document states that participating states that launch these registration efforts and complete the assessments will receive their share of the allocation.
During the second year, Tier 1 states are required to conduct intention surveys, stability assessments, and detailed analyses of the causes and impacts of displacement.
Completion of these activities will qualify each Tier 1 state for an additional 500,000 dollars.
The largest payout is scheduled for the third year, when states must ensure that at least 80 percent of IDPs in host communities are registered and profiled.
States that meet this benchmark will receive 500,000 dollars each, bringing the total funding under this condition to 12 million dollars.
The agreement anticipates that displacement-related data gaps will be fully addressed by the fourth year, with no additional payments attached.
Two other performance-based conditions are also included, tied to improvements in local government asset management and the long term integration of IDPs.
Only states that meet eligibility thresholds based on IDP population size and proportional share are eligible to participate.
The World Bank also reserves the right to withhold, reallocate, or cancel funds if states fail to meet agreed targets within stipulated timelines.
Repayment of the concessional loan will begin on January 15, 2031, and continue every six months until July 15, 2050.
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