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Home » FG Seeks $1bn World Bank loans for IDPs, Agriculture 
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FG Seeks $1bn World Bank loans for IDPs, Agriculture 

Prompt NewsBy Prompt NewsMarch 18, 2024Updated:May 8, 2024No Comments5 Mins Read
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By Afolabi Bukola

Nigerian Government is in talks with the World Bank to complete the processes of obtaining over $1bn loans to address the challenges facing Internally Displaced Persons and their host communities, as well as boost rural access and agricultural marketing in the country.

The request is contained in World Bank documents titled, ‘Solutions for the Internally Displaced and Host Communities Project’ and ‘Rural Access and Agricultural Marketing Project – Scale Up.’

While the IDP loan is put at $500m, the rural access and agricultural marketing project loan is estimated at $550m.

Some of the World Bank loans that are being currently addressed by the global bank have reportedly been initiated under the previous administration of President Muhammadu Buhari

According to the documents provided on the bank’s website, the IDP initiative is meant to improve access to resilient and inclusive basic services and economic opportunities for IDPs and their host communities in displacement-affected local government areas in the northern part of the country.

The Solutions for the Internally Displaced and Host Communities Project, estimated for an appraisal date of February 11, 2025, and slated for approval on April 8, 2025, represents a targeted effort to improve the lives of millions affected by internal displacement due to conflict, violence, and climate challenges.

The World Bank said the Federal Ministry of Budget and Economic Planning would act as the borrower for Nigeria, while the National Commission for Refugee Migrants and Internally Displaced Persons and the North East Development Commission are the implementing agencies.

A breakdown of the funding showed that $30m was proposed to be spent on the project management and support for the implementation of the national policy while $120m will be expended on community development, income-generating opportunities, and social cohesion.

Also, strategic investments for climate-resilient economic development will gulp $320m and $30m on strengthening state and LG institutions for improved service delivery.

The document from the Washington-based Bank reads: “The proposed project will utilise a three-pronged approach to develop sustainable solutions for IDPs and host communities in Northern Nigeria. First, the proposed project aims to provide tailored solutions for each of the targeted states and communities, recognizing that each internal displacement situation is specific and localised, with conflict, violence and/or climate challenges presenting a different level and set of vulnerabilities for host communities.

“Gender, age, and special needs of individuals also play a role, as well as the length of displacement, number of times displaced and other factors. Thus, responses will be adapted to address the specific needs of vulnerable populations within displacement-affected states and communities. Second, the proposed project will follow a “People-in-Place” approach, integrating the needs of the people and the impacts on the place where they settle.

 “Project activities will aim to improve the provision of infrastructure and basic services as well as livelihood opportunities in an integrated way, moving beyond capital investments to supporting operational improvements and sectoral reforms, and fostering income-generating opportunities within host communities.”

According to a review by a World Bank team, Northern Nigeria, especially in Borno, Adamawa, and Yobe states experienced the highest numbers of internally displaced persons.

This is primarily due to the ongoing conflict involving Boko Haram, as well as other factors such as banditry and conflicts between farmers and herders, leading to the displacement of over 3.5 million people.

Borno State alone hosts nearly 1.7 million IDPs, which is over a quarter of its total population and almost half of the total IDP population in Northern Nigeria.

The Bank said “Nigeria is considered an FCV country and has one of the largest and fast-growing populations of internally displaced persons in the world, as a result of conflict and natural events. In Northern Nigeria alone, conflict and violence have led to the displacement of over 3.5 million people.

“Over 65 per cent of IDPs in Northern Nigeria are in the NE region (approximately 2.3 million IDPs as of June 2023) 5 and 95 per cent of them are in Borno, Adamawa and Yobe (the “BAY states”). Borno, which has been the epicentre of fighting involving Boko Haram since 2014, hosts the highest number of IDPs of any state in the North, with nearly 1.7million IDPs, representing over a quarter of the state’s total population and almost half of the total IDPs in the North.” READ ALSO:

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The Bank added that the inflow of IDPs had put additional pressure on already strained and obsolete infrastructure and services in the host communities highlighting that, “In Maiduguri, IDP inflows have put serious pressure on water supply and sanitation infrastructure and services already under strain before 2014. 

“Due to the inflow of IDPs, daily solid waste generation increased from an estimated 390 tons to 570 tons per day. Solid waste management in Maiduguri is insufficient, with over 60 per cent of residents lacking access.”

The situation is further compounded by the weakening of poverty reduction efforts due to the conflicts and increasing climate shocks, making Nigeria one of the countries with the largest and fastest-growing IDP populations worldwide.

The World Bank’s intervention through the requested loan aims to mitigate the effects by fostering economic opportunities and improving access to basic services, thus contributing to a more stable and prosperous future for IDPs and their host communities in Nigeria.

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