UN Backs Market-based Solutions For Nigeria’s IDPs

The United Nations has thrown its weight behind market-based solutions for Internally Displaced Persons (IDPs) and their communities in Nigeria, which is a private sector initiative to assist victims of crises to rebuild their lives.

Indications to this development emerged during a conference convened by the United Nations and its strategic partners, which ended in Abuja with a strong commitment to advancing innovative, market-based solutions.

According to a statement issued on Friday by Dr. Seyi Soremekun of the United Nations Information Centre (UNIC), the two-day event brought together leaders from government, the private sector, development finance institutions, humanitarian and development agencies and civil society.

It was built on the progress and recommendations of the 2024 Africa Roundtable on Private Sector Solutions to Internal Displacement, which united partners from 12 countries to explore sustainable and scalable approaches beyond traditional aid models.

This year’s conference, which was held in Lagos between 12 and 13 February 2026, deepened that momentum by showcasing concrete pathways through which Nigeria’s private sector could contribute meaningfully to economic recovery, job creation and resilience in fragile and conflict affected areas.

Vice President Senator Kashim Shettima, in his keynote address, emphasised that Nigeria’s economic future depended on ensuring that no region and no community would be left behind, adding that investing in displaced communities is an investment in our unity, our stability and our long-term prosperity.

Shettima, represented by the Minister of Defence, General Christopher Musa (Rtd), reaffirmed the commitment of the Federal Government to work with all stakeholders to transform displacement from a condition of vulnerability into an opportunity for inclusion, productivity and renewed national cohesion.

“I encourage the private sector to take practical and measurable steps: Expand investment into high potential regions affected by displacement. Integrate displaced persons and host communities into formal and informal value chains. Support skills development, apprenticeships and enterprise growth. Leverage technology and finance to unlock productivity and improve access to markets,” he explained.

These actions, according to him, would not only generate returns but also strengthen the social and economic fabric of the nation.

He assured that “Government will continue to provide policy clarity, regulatory support and security assurance. Where markets hesitate, we are prepared to work with partners to do risk investment through structured incentives, blended finance mechanisms and well- designed public private partnerships.

“Our objective is clear. To create conditions where private capital can flow responsibly into underserved but high potential areas, with outcomes that are measurable, scalable and sustainable,” he added.

The United Nations Resident and Humanitarian Coordinator in Nigeria, Mohamed Malick Fall, stressed that the UN and governments alone could not manage the scale of displacement in Nigeria.

“Across Nigeria, more than 3.7 million people live in internal displacement. Another 2.6 million Nigerians have returned home but still struggle to rebuild. Over 2.5 million displaced people live within host communities. This is not just a national challenge. It is part of a global crisis. It is a test of our shared humanity” he said.

Fall explained that sustainable solutions in Nigeria require long‑term investments, not short‑term philanthropy, urging collaboration through concessional financing, de‑risking mechanisms and innovative financing models that can support IDP reintegration and resilience.

“The United Nations stands with Nigeria because solutions for internally displaced persons are possible. Together with the Government and development partners, we work to ensure that women, youth and persons with disabilities are not left behind.”

In panel discussions it was underscored how Nigeria’s dynamic private sector could unlock the economic potential of displaced populations by working with what already existed to create markets, revitalize local economies and expand value chains, which would enable IDPs to build sustainable livelihoods.

According to Habiba Suleiman, the Head of Strategic Partnerships, Tropical General Investments, (TGI), a co-sponsor of the event and a major company working in areas with high numbers of IDPs, “Our most effective models are those that are hyper-local and they have succeeded by deliberately weaving in existing social and economic realities, not bypassing them.”

The conference’s high-level discussions led to practical, market-driven solutions around ways to strengthen local value chains and gaps in supply chains being pinpointed. Innovative initiatives already being implemented in Nigeria’s displacement context were highlighted, helping stakeholders to spot models that can be scaled and adapted across different states and sectors. Government agencies, private sector partners, civil society organizations and development actors also gave commitments to invest in sustainable and inclusive private sector led solutions.

The conference also highlighted actionable mechanisms and funding instruments that can drive accelerated implementation across priority sectors, from blended finance models and impact investment tools to enterprise incubation programs tailored for IDP-led businesses.

A major milestone of the conference was the launch of a new multi-stakeholder coordination mechanism. This platform will sustain engagement beyond the event, foster partnerships, monitor progress and promote continuous alignment among key actors working to improve outcomes for displaced communities.

Participants reaffirmed that private sector engagement is central to shaping a more peaceful, stable and prosperous Nigeria: one where displaced individuals and host communities can thrive through inclusive economic opportunities.