Nigeria faces the potential loss of $602.95 million in aid from the United States Agency for International Development (USAID) for 2025, due to a 90-day suspension of all agency programs.
This suspension, initiated by the then-President, is part of a broader review of US foreign assistance, aimed at streamlining programs and ensuring alignment with national interests.
The funding freeze impacts critical sectors in Nigeria, including health, governance, economic development, and security, placing numerous USAID-supported initiatives in jeopardy. This situation arises concurrently with Senate inquiries into allegations of USAID funding being channeled to terrorist organizations, notably Boko Haram.
The Senate has summoned key intelligence officials, including the heads of the National Intelligence Agency, the Defence Intelligence Agency, the Department of State Services, and the National Security Adviser, to address these serious accusations. These summons were prompted by concerns raised by a US Congressman regarding the potential misuse of American aid funds. The Congressman’s allegations, coupled with the ongoing funding freeze, have cast a shadow over the future of US aid to Nigeria and triggered investigations by both the US House Committee on Foreign Affairs and the Nigerian Senate.
A substantial portion of the proposed USAID budget for Nigeria in 2025, specifically 89.27%, was designated for health programs, underscoring the nation’s reliance on US support in this sector. The largest allocation, $368 million, was intended for HIV/AIDS programs, followed by significant funding for tuberculosis, malaria control, maternal and child health, and family planning initiatives. The relatively small allocation for water supply and sanitation has raised concerns about access to clean water, particularly in rural communities.
In response to the funding freeze, the Nigerian government has implemented emergency measures, allocating $200 million to maintain essential healthcare services. These funds are earmarked for vaccine procurement, antiretroviral drug distribution, and maternal health services, mitigating potential disruptions to critical health interventions.
The government is also working to absorb 28,000 health workers previously employed under USAID programs, demonstrating a commitment to taking ownership of the country’s healthcare sector.
Beyond health, the suspension of USAID funding also jeopardizes democracy and governance initiatives in Nigeria, which were allocated $7.5 million. These programs support the rule of law, good governance, civil society engagement, and human rights. The future of these initiatives is uncertain, especially as the US government reevaluates its foreign policy commitments in Africa. Similarly, peace and security efforts, with a proposed budget of $7.6 million, including funding for conflict mitigation, military partnerships, and citizen security, face potential setbacks.
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Economic growth programs, slated to receive $39.6 million, representing the largest allocation outside of health, are also affected. This funding was intended for agriculture, private sector productivity, and clean energy projects, signaling a focus on economic sustainability and private sector engagement. The funding freeze casts doubt on the disbursement of these funds and the continuity of these crucial programs.
The US Embassy in Nigeria has reaffirmed its commitment to ensuring the proper utilization of US assistance, emphasizing the rigorous monitoring and evaluation systems in place to verify that aid reaches its intended recipients. The US government has also unequivocally condemned the violence perpetrated by Boko Haram and other extremist groups, underscoring its stance against terrorism in the region. The controversy surrounding USAID funding and its alleged links to terrorism highlight the complexities of international aid and the challenges of ensuring its effective and appropriate use.
