Displaced Populations in Nigeria Contribute Significant Economic Impact
A recent report by the Amahoro Coalition reveals that Africa’s 43.1 million displaced individuals generate an estimated $27 billion in annual income. Traditionally viewed as recipients of humanitarian aid, these communities represent the continent’s largest untapped investment opportunity.
The report, titled Hiding in Plain Sight, is purported to be the first in-depth examination of the economic landscape surrounding Africa’s forced migration. According to the findings, over 56% of displaced Africans are economically active, thriving in sectors such as agriculture, entrepreneurship, finance, manufacturing, and supply chains. Despite their significant economic contributions, these individuals attract minimal commercial investment.
The Amahoro Coalition emphasizes that the displaced population exceeds the populations of 45 out of the 54 African countries, urging stakeholders to approach this issue as an evolving economy rather than solely a humanitarian crisis.
The report challenges prevailing misconceptions about investment risks, noting that displaced entrepreneurs fail at a rate one-third lower than their counterparts from host communities. This insight calls for a reassessment of the commercial opportunities that exist within these demographics.
Despite the immense market potential, fewer than ten formal financial services providers cater to the approximately 27 million displaced individuals across Africa. In contrast, over 850 banks target mainstream consumers, highlighting a critical gap in funding and support.
The report contends that businesses need not establish entirely new ecosystems to tap into this market. Instead, they can leverage existing infrastructure, demand, and a skilled workforce in many displacement regions. The private sector can build on the efforts already made by humanitarian and development organizations to create sustainable economic avenues.
Unveiled in Abuja, the findings garnered support from various stakeholders in the humanitarian, agricultural, financial, and development sectors. They collectively urged a shift from predominantly aid-driven approaches to investing sustainably in internally displaced persons (IDPs) and refugees.
During the report’s launch, Tito Mbasi, Amahoro Coalition’s Partnership Strategy Manager, highlighted that displacement in Nigeria alone generates an estimated $300 million annually. He emphasized the need to view displacement as both a humanitarian and economic matter, advocating for a commercial dialogue to explore investment opportunities.
With an estimated 3.7 million internally displaced people in Nigeria, some forecasts suggest this number could rise to 7 million. Mbasi identified agriculture as a prime area for investment, supported by research that underscores the economic potential of agriculture, entrepreneurship, finance, manufacturing, and supply chains. Providing displaced individuals access to land and productive assets could unlock agricultural opportunities valued at approximately $2.4 billion, particularly in northern Nigeria, which hosts a large displaced population.
Mbasi noted that many displaced farmers possess years of experience but remain isolated from formal agricultural value chains due to insecurity. “Knowledge hasn’t disappeared; these are experienced farmers who understand their land, crops, and farming systems. We have an opportunity to harness this knowledge while introducing innovative practices that enhance productivity,” he stated.
As companies seek market entry, outgrower schemes could integrate displaced farmers into existing supply networks while employing them as extension or field agents in often inaccessible areas. Frederick Degbe, head of private sector partnerships for Amahoro Coalition in West Africa, reiterated that the organization is collaborating with businesses to explore practical methods for integrating displaced individuals into their operations rather than relying solely on philanthropic assistance.
“We are partnering with companies that are in a growth phase, aiming to incorporate displaced individuals into their expansion strategies, supply chains, and operational frameworks. Our focus is on sustainability, not dependency,” Degbe remarked. He identified agricultural initiatives, digital skills, and renewable energy as sectors ripe for creating employment and financing opportunities for displaced communities.
Kabiru Ibrahim, former president of the All Farmers Association of Nigeria, shared his initial skepticism about viewing displacement through an economic lens but became convinced after engaging with various stakeholders. He recognized the potential for growth amid adversity. “In difficult times, there exists the possibility for opportunity. If harnessed effectively, this could lead to a more prosperous Nigeria,” he added.
Also weighing in, Agrolog Chairman Manzo Maigari emphasized the necessity for agribusinesses to adapt to the realities of displacement, especially as insecurity hampers rural communities that are vital for Nigeria’s food production. He cited a success story from Benue State’s livelihood restoration program, which benefited 5,000 internally displaced families by providing female piglets and support services. “Within a year, every participating family earned close to N2 million from this initiative. This illustrates that with productive assets and proper support, individuals can successfully rebuild their livelihoods,” he noted.
