Nigeria’s IDPs hold untapped economic potential, new report says

Internally Displaced Persons (IDP) learning centre

A new report has identified Africa’s displaced population as a $27 billion annual economic market, urging Nigerian businesses to shift from viewing internally displaced persons (IDPs) and refugees as humanitarian beneficiaries to recognising them as a commercially viable workforce capable of driving economic growth.

The report, Hiding in Plain Sight: Africa’s $27 Billion Displacement Market Opportunity, launched in Abuja by the Amahoro Coalition, argues that displaced populations represent an untapped labour force whose integration into agriculture, finance, manufacturing, entrepreneurship and supply chains could unlock billions of dollars in value.

According to the report, Africa is home to about 43.1 million displaced people who collectively earn an estimated $27 billion annually, with more than half already engaged in economic activities.

The report estimates that unlocking land access for displaced communities alone could generate an additional $2.4 billion in agricultural output across the continent.

Speaking at the launch, Strategy Custodian for Partnerships at Amahoro Coalition, Tito Mbathi, said the conversation around displacement must move beyond humanitarian assistance to one centred on investment and commercial opportunities.

He noted that Nigeria alone hosts millions of displaced people, many of whom possess years of farming experience but are unable to utilise their skills because of conflict and displacement.

“We don’t necessarily want to have a humanitarian conversation. We want to have a commercial conversation. We want to talk about investment potential and how the private sector can come together to address displacement while creating economic value,” he said.

Mbathi explained that the coalition’s research examined opportunities across agriculture, entrepreneurship, finance, manufacturing and supply chains, stressing that integrating displaced farmers into existing agricultural value chains could help close labour shortages while boosting productivity.

He noted that many experienced farmers displaced by insecurity in northern Nigeria remain outside formal agricultural systems despite possessing generations of farming knowledge.

According to him, the coalition has identified opportunities through out-grower schemes, integrating displaced persons into off-taker networks, and engaging them as extension workers and delivery agents in hard-to-reach communities.

He added that about 56 per cent of farmland in displacement-affected northern states currently lies fallow, creating significant opportunities for businesses willing to engage displaced communities.

West Africa Private Sector Partnerships Lead at Amahoro Coalition, Frederick Deegbe, said the organisation focuses on creating jobs and financing opportunities for displaced persons by partnering with businesses rather than relying solely on aid.

He explained that instead of asking companies to employ displaced persons out of charity, the coalition studies business models to identify commercially sustainable ways of integrating them into operations.

According to him, Amahoro works with governments, development agencies and the private sector to ensure business expansion aligns with opportunities for displaced communities.

Deegbe cited agriculture, digital skills development and renewable energy as key sectors with strong potential, adding that even simple interventions such as providing a ginger seedling to a displaced farmer could significantly improve livelihoods.

President of the Nigeria Agribusiness Group, Kabir Ibrahim, acknowledged initial scepticism about the commercial opportunities presented by displaced populations but said the presentations convinced him that businesses should keep an open mind.

He urged stakeholders to recognise that opportunities often emerge from adversity, noting that Africa’s displacement economy presents significant prospects for agribusiness and investment.

Ibrahim said stakeholders should explore practical ways of transforming displacement challenges into economic opportunities capable of improving livelihoods and strengthening Nigeria’s economy.

Chairman of AgroLog Ltd, Manzo Maigari, said insecurity has made the integration of displaced persons into agricultural value chains an economic necessity rather than a choice.

He described smallholder farmers as the backbone of Nigeria’s agricultural economy, stressing that businesses operating upstream in agriculture cannot succeed without working closely with them.

Join Our Channels

Taboola Recommendation Widget