Households residing in Internally Displaced Persons (IDP) camps in North East Nigeria face significant socio-economic challenges that adversely affect their livelihood activities, particularly among the more vulnerable groups. This study examines how these households utilize various forms of capital to sustain their livelihoods. A quantitative research method was adopted, employing a cross-sectional design. Using Krejcie and Morgan’s sample size determination table at a 95% confidence level, a sample size of 210 households was selected through a stratified and systematic sampling technique. Households were stratified based on their locations within the IDP camps. Data was collected through structured interviews and analyzed using descriptive statistics. Findings reveal that limited access to and utilization of capital restricts livelihood opportunities for households in the camps. Household capital, which includes human, social, natural, physical, and financial assets, serves as the foundational resources for livelihood strategies. The study highlights that households rarely rely on a single form of capital. Instead, they combine various types of capital in a complementary manner to support their survival and livelihood goals. The degree and combination of capital used vary among households, reflecting the dynamic nature of capital utilization in IDP settings. Based on these findings, it is recommended that government agencies and stakeholders develop targeted and integrated strategies to enhance capital utilization among IDP households. Such an approach should aim to strengthen the five key forms of livelihood capital—financial, human, social, physical, and natural—in a coordinated manner to promote sustainable livelihoods and improve household resilience in IDP camps across North East Nigeria.