The World Bank has approved a fresh $300 million loan to support over 1.5 million internally displaced persons (IDPs) and host communities in northern Nigeria, targeting conflict-affected states such as Borno, Adamawa, and Yobe. The new financing, to be rolled out over five years, is expected to improve access to healthcare, education, clean water, sanitation, and livelihood opportunities through community-led initiatives.
The loan arrives as Nigeria confronts a mounting displacement crisis, with more than 3.2 million people forced from their homes due to insurgency, armed violence, and climate-related disasters.
The Internal Displacement Monitoring Centre (IDMC) reports that over 376,000 people were displaced in 2021 alone, with numbers continuing to rise as insecurity persists, particularly in the North-East and North-West regions.
This development also comes as Nigeria’s public debt continues to balloon. The Debt Management Office reveals that national debt has surged from ₦12.6 trillion in 2015 to nearly ₦150 trillion by mid-2025. The weakening of the naira has intensified the strain, with a 68 percent increase in foreign debt servicing costs recorded in the first half of 2025.
Despite concerns from economic analysts and civil society groups over the sustainability of borrowing, the World Bank insists the funds will directly support long-term recovery and self-sufficiency for displaced populations. Priority will be given to women and other vulnerable groups, and the interventions will be managed at the community level to foster local ownership and durability.
The loan is part of the Bank’s broader financial engagement in Nigeria, where its active portfolio through the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD) currently stands at $12.2 billion. Nigeria has received more than 130 credits and loans from the World Bank since 1958, beginning with support for railway development.
Yet, despite decades of international development financing, core challenges remain. Data from UNICEF shows that 32 percent of children under five in Nigeria suffer from stunted growth due to malnutrition, a reflection of persistent poverty and lack of access to basic services.
While the World Bank positions this latest initiative as a step toward building resilience, development experts caution that unless the root causes of displacement — including poverty, unemployment, and poor governance — are systematically addressed, the country risks falling into a cycle of debt-funded, short-term interventions that fail to produce meaningful and lasting change.
