The World Bank has earmarked up to $12 million loan under a new federal project for Nigerian states where internally displaced persons camps are located.

Under the ‘Performance-Based Condition Two’ contained in the document on ‘Solutions for the Internally Displaced and Host Communities Project’, approved by the World Bank on August 7, 2025, the project focuses on closing data gaps on displacement-related vulnerabilities.

However, a series of strict data, governance, and integration benchmarks must be met before the loan can be accessed. The agreement tied disbursement of part of the loan to performance-based conditions. States will be paid only after independently verified results are achieved.

States that successfully register and profile displaced persons living within host communities, will get the disbursement spread over three years, with escalating requirements.

According to the document, the approved funding is part of a $300m concessional credit approved by the International Development Association for the Solutions for the Internally Displaced and Host Communities Project, signed between the Federal Government and the Bank.

Each installment represents 2.5 per cent of the principal amount, spreading repayment evenly over 20 years. The payment currency is the US dollar, and the interest charge is based on a reference rate plus a variable spread, subject to agreed ceilings and floors

With repayments deferred for several years and disbursements tied to performance, the agreement places the burden on states not just to spend, but to deliver verifiable results in data quality, asset management, and the long-term integration of displaced persons into Nigeria’s development framework.

In the first year after the project becomes effective, participating Tier 1 and Tier 2 states must launch registration and profiling of IDPs in selected host communities and complete comprehensive demographic and vulnerability assessments in at least two wards. States that meet this initial threshold are entitled to $0.25m ($250,000) each.

The report read, “Participating Tier 1 and Tier 2 States launched registration/profiling of IDPs in selected host communities, and completed: comprehensive demographic and vulnerability assessment; in at least 2wards. Each State which completes the assessment and surveys in the selected wards will receive $0.25m of the PBC allocation.”