The U.S. government has suspended USAID funding for Nigeria, freezing $602.95 million in aid for health, security, and economic programs.
The suspension follows a review of U.S. foreign assistance under President Trump’s executive order.
This has caused uncertainty for critical projects Nigerian authorities are scrambling to mitigate the impact, allocating emergency funds to sustain essential healthcare services and economic initiatives.
Nigeria’s development and healthcare sectors are set to face a significant setback following the suspension of United States Agency for International Development (USAID) funds under a directive from U.S. President Donald Trump.
The executive order, which halts all USAID programs for 90 days, has thrown into uncertainty the $602.95 million earmarked for Nigeria in 2025.
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The suspension stems from a broader review of U.S. foreign aid, with the Trump administration seeking to reassess financial assistance to foreign nations, ensuring alignment with American interests.
This freeze has disrupted funding for key sectors such as healthcare, governance, economic growth, and security in Nigeria, all of which were heavily reliant on USAID support.
Among the most affected programs is the country’s health sector, which was allocated 89.27% of the total USAID grant.
A significant portion -$368 million- was intended for HIV/AIDS programs under the Global Health Program, while additional funds were set aside for malaria control, tuberculosis treatment, maternal health, and reproductive health services.
With USAID funding halted, the Nigerian government has had to intervene by approving $200 million to sustain essential healthcare services, including vaccine procurement and antiretroviral drug distribution.
Beyond healthcare, the freeze also affects Nigeria’s economic and security landscape.
Over $39 million was allocated to economic growth initiatives, particularly in agriculture and clean energy.
While approximately $7.6 million was earmarked for strengthening the country’s security framework, including counterterrorism efforts against groups such as Boko Haram.
With U.S. support now uncertain, Nigeria may be forced to seek alternative funding sources, such as the World Bank or African Development Bank, to sustain these programs.
Meanwhile, the suspension comes amid allegations from U.S. Congressman Perry Scott, who claimed that some USAID funds had been misappropriated, potentially ending up in the hands of terrorist organizations.
American lawmaker Scott alleged with no proof that the United States has been funding Boko Haram for years.
In response, the Nigerian Senate has summoned top intelligence officials to investigate the claims, with security agencies expected to provide confidential briefings on the matter.
Despite the controversy, the United States Embassy in Nigeria has reaffirmed its commitment to ensuring aid transparency, dismissing any concerns about funds being diverted to extremist groups.
The embassy emphasized that stringent monitoring systems are in place to track the allocation and usage of U.S. foreign aid.
If the aid suspension extends beyond the 90-day review period, Nigeria faces the risk of long-term financial constraints, particularly in health and security sectors.
Experts warn that without USAID’s intervention, the nation’s development trajectory could suffer major setbacks, forcing policymakers to explore alternative strategies to mitigate the impact of lost funding.
