Nigeria may miss access to a $602.95 million grant from the United States Agency for International Development (USAID) for 2025 following a 90-day suspension of all agency programs by President Donald Trump.
The fund freeze stems from an executive order signed by Trump after his return to office in January 2025, directing a comprehensive review of US foreign assistance. The review aims to assess the effectiveness of aid programs, eliminate waste, and ensure funding aligns with US national interests.
With the USAID funding freeze, critical programs in health, governance, economic development, and security face disruption.
The 2025 USAID budget proposal allocated 89.27% of the total $602.95 million for health-related programs, underscoring Nigeria’s reliance on US support in this sector. Key allocations included:
- HIV/AIDS programs: $368M
- Malaria control: $73M
- Tuberculosis treatment: $22M
- Maternal and child health: $33.25M
- Family planning and reproductive health: $22.5M
Funding for water supply and sanitation was just $2.5M, raising concerns about clean drinking water access, especially in rural areas.
In response to the USAID aid suspension, the Nigerian government approved $200 million to sustain healthcare services. The Ministry of Finance confirmed these funds would be directed toward:
- Vaccine procurement
- Antiretroviral drug distribution
- Maternal health services
Additionally, Coordinating Minister of Health and Social Welfare, Ali Pate, announced plans to engage 28,000 health workers previously funded under the USAID program.
The Federal Executive Council (FEC) also approved ₦4.5 billion for the procurement of HIV treatment packs to support Nigerians living with HIV/AIDS.
Senate Investigation into USAID Allegations
The Nigerian Senate has summoned intelligence chiefs to investigate claims by US Congressman Perry Scott that USAID funds may have been diverted to terrorist organizations, including Boko Haram.
Those summoned include:
- National Intelligence Agency (NIA)
- Defence Intelligence Agency (DIA)
- Department of State Services (DSS)
- National Security Adviser, Nuhu Ribadu
The resolution followed an Order of Urgent National Security raised by Senator Ali Ndume (Borno South).
Security and Economic Growth Programs Affected
The USAID budget also allocated funds to security and economic development, which are now at risk:
- Security Programs ($7.6M): Strengthening Nigeria’s security capabilities, including:
- $2.8M for conflict mitigation
- $1M for military partnerships
- $3.05M for citizen security and law enforcement
- Economic Growth Programs ($39.6M):
- $29.1M for agriculture
- $1.5M for private sector productivity
- $5M for clean energy projects
If the 90-day aid review extends, Nigeria may need to seek support from development partners like the World Bank and African Development Bank (AfDB).
History of USAID Support for Nigeria
According to USAID’s Foreign Assistance Dashboard, between 2022 and 2024, the US agency allocated approximately $2.8 billion to Nigeria.
- 2024: $780M
- 2023: $1B
- 2022: $970M
The USAID funding freeze reflects the Trump administration’s new approach to foreign aid, prioritizing US national interests. With funding under review, the fate of Nigeria’s healthcare, security, and economic programs remains uncertain.
Stay tuned to 9am News Nigeria for more Breaking News, Business News, Sports updates And Entertainment Gists.
