• Monday, December 02, 2024
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IDPs put strain on Nigeria’s economic growth – World Bank

IDPs put strain on Nigeria’s economic growth – World Bank

The World Bank has described Nigeria’s over 3.5 million Internally Displaced Persons (IDPs), as a growing crisis that puts a significant strain on the nation’s economic growth.

The global financial body says the growing IDPs were being fueled by insecurity, natural disasters, and conflict.

With the government allocating N3 trillion in 2024 alone to address their needs, international donors, including the United States, have also pledged N45 billion ($27 million) to support these vulnerable individuals.

According to the International Organisation for Migration 2024 reports, 55 percent of IDPs are women, while 45 percent are men. Of the total IDP population, 55 percent are children (ages 1-17), 17 percent are men (ages 18-59), 22 percent are women (ages 18-59), and 6 percent are aged 60 and above.

Read also: World Bank gets £1.98bn pledge from UK to support low-income countries

Challenges and consequences

The Nigerian economy faces significant challenges due to the ongoing crisis IDPs. One of the most pressing issues is the loss of a productive workforce. The country’s vibrant youthful population, which should ideally be fueling economic growth, finds itself either idle or struggling with limited opportunities for empowerment.

Many young people, once engaged in farming, trade, or other forms of work, are now displaced and unable to contribute meaningfully to the nation’s productivity. Instead of driving innovation or supporting small-scale businesses, they are left without resources or the means to build their own livelihoods, which further strains the economy.

In addition to the loss of workforce productivity, Nigeria’s already fragile fiscal position is under intense pressure. The country’s debt profile stood at N134 trillion in the second quarter of 2024, according to the National Bureau of Statistics, and the ongoing need to cater to IDPs only compounds this financial burden.

Every year, substantial amounts of money are allocated for security and humanitarian services aimed at alleviating the suffering of the displaced. This heavy expenditure leaves little room for investment in other essential sectors like infrastructure, education, and healthcare, creating a cycle where the country struggles to fund its long-term development plans.

As the number of IDPs grows, so does the level of poverty. The displacement of families means the loss of livelihoods, which leads directly to a sharp decline in income levels. For many, the inability to work or access stable income sources exacerbates the problem, turning economic hardship into a vicious cycle.

This shift often results in lower productivity, as displaced individuals are unable to contribute to the economy. In turn, this contributes to rising crime rates, social unrest, and political instability, as people, in their desperation, turn to survival tactics that further destabilise communities.

Nigeria also finds itself increasingly dependent on external support to address the IDP crisis. Despite the country’s efforts, it simply cannot shoulder the entire financial burden of caring for millions of displaced individuals. The help it receives from international donors and foreign organizations, while invaluable, places Nigeria in a vulnerable position. The nation becomes reliant on external forces, leaving it at the mercy of unfavourable negotiations and conditions that may not align with its national interests.

Read also: FG, World Bank to provide jobs for 10m youths in 5yrs

Such dependency forces the government to fulfil certain obligations regardless of the strained state of the country’s economy, often prioritising these international agreements over local needs.

The impact of displacement on society also brings unexpected social challenges. In Borno State, the governor recently raised concerns about the high rates of polygamy in IDP camps, where many displaced individuals, especially men, are idle and facing limited prospects for a stable life.

This situation breeds social vices, and the consequences can be far-reaching. Non-consensual relationships and violations of rights often result in unwanted pregnancies, contributing to a growing population of children born into hardship.

Alarmingly, 55 percent of IDPs in Nigeria are children, according to the International Organization for Migration. These children, born into difficult circumstances, place even more pressure on host communities and the government to provide for their basic needs, further straining already limited resources.

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