On January 21, 2026, the World Bank earmarked a $12 million loan specifically for Nigerian states hosting Internally Displaced Persons (IDP) camps. This funding is a carve-out of a much larger $300 million concessional credit approved in late 2025 for the Solutions for the Internally Displaced and Host Communities Project (SOLID).

Unlike traditional aid, this $12 million is structured as a performance-based loan, meaning states can only access the funds by meeting strict governance and data-tracking benchmarks.

How the $12m Loan Works

The World Bank has tied the disbursement to “Performance-Based Condition Two,” which focuses on closing the data gaps regarding displacement-related vulnerabilities.

• Eligibility: To qualify, Tier 1 states must have an IDP population exceeding 150,000 (representing over 2% of the state’s population). Tier 2 states qualify with at least 100,000 IDPs.
• Payout Milestones:
  • Year 1: States receive $250,000 for launching IDP registration and completing vulnerability assessments in at least two wards.
  • Year 3: The largest payout of $500,000 per state is triggered once 80% of IDPs in host communities are successfully registered and profiled.
• Verification: Funds are not released until results are independently verified by agents acceptable to the World Bank.

Project Goals (SOLID)

The broader $300 million project aims to transition Northern Nigeria from emergency crisis response to long-term stability. Key priorities include:

• Resilient Infrastructure: Building climate-resilient water systems and roads in host communities strained by population surges.
• Documentation: Helping IDPs access legal documents like birth certificates, marriage licenses, and residence IDs.
• Livelihoods: Funding at least three development programs per state focused on skills training and small-business grants.
• Integration: Legalizing land ownership transfers to IDPs to reduce communal tensions.

Repayment: The loan has a 20-year repayment schedule.

Grace Period: Principal repayments are set to begin on January 15, 2031, and will conclude by July 2050.

Target Population: The project is expected to benefit approximately 7.4 million people, including 1.3 million IDPs across states like Borno, Adamawa, Yobe, Katsina, and Benue.