Nigeria’s Access to $602.95m USAID Grant in Limbo Amid Trump’s Aid Freeze
Nigeria’s access to a crucial $602.95 million grant from the United States Agency for International Development (USAID) for 2025 is now under threat following a sweeping 90-day suspension of all USAID programs, implemented by US President Donald Trump.
The freeze follows an executive order signed by Trump in January 2025, shortly after his return to office. The order mandates a comprehensive review of all US foreign aid programs to assess their efficiency and alignment with American national interests.
The sudden freeze has disrupted multiple USAID-supported initiatives in Nigeria, particularly in critical sectors such as healthcare, governance, economic development, and national security.
Nigerian Senate Investigates Terrorism Funding Allegations
The suspension also comes as the Nigerian Senate summoned intelligence chiefs to investigate allegations made by US Congressman Perry Scott. Scott accused USAID of indirectly funding terrorist organizations, including Boko Haram.
Senator Ali Ndume, representing Borno South Senatorial District, raised an Order of Urgent National Security to address the claims. Intelligence officials summoned include the heads of the National Intelligence Agency, Defence Intelligence Agency, Department of State Services, and National Security Adviser Nuhu Ribadu.
Impact on Health Sector: Funding for HIV/AIDS and Maternal Health in Jeopardy
The proposed USAID budget for 2025 allocated $368 million—nearly 89% of the total grant—to health-related initiatives. Among the programs at risk:
- HIV/AIDS: $368 million was earmarked for Global Health Programs, with $322 million from GHP-State and $46 million from GHP-USAID.
- Malaria and Tuberculosis: $73 million and $22 million, respectively, were dedicated to combating these diseases.
- Maternal and Child Health: $33.25 million was allocated for maternal healthcare, with $22.5 million for family planning and reproductive health programs.
Only $2.5 million was designated for water supply and sanitation, a critical need in Nigeria’s rural areas.
Emergency Measures by Nigerian Government
In response, the Nigerian government has approved $200 million to sustain healthcare services. The Ministry of Finance confirmed the funds will go toward vaccine procurement, antiretroviral drug distribution, and maternal health services.
Ali Pate, Coordinating Minister of Health and Social Welfare, also revealed plans to engage 28,000 health workers who had been funded under USAID’s programs. The Federal Executive Council approved an additional N4.5 billion for the procurement of HIV treatment packs to support Nigerians living with HIV/AIDS.
Governance and Security Initiatives Face Uncertainty
Governance programs were set to receive $7.5 million under USAID, covering democracy, civil society engagement, and human rights initiatives. However, these programs are now in jeopardy as Trump’s administration reassesses its foreign policy priorities in Africa.
The aid suspension also places $7.6 million in security funding at risk, which was intended to bolster Nigeria’s anti-terrorism efforts.
Economic Development Programs Could Be Affected
USAID had allocated $39.6 million for economic growth initiatives, with $29.1 million designated for agriculture. Clean energy projects and private sector productivity were also slated to receive $5 million and $1.5 million, respectively.
Broader US Scrutiny of Foreign Aid
Between 2022 and 2024, Nigeria received $2.8 billion from USAID. However, the agency now faces heightened scrutiny after Congressman Perry’s claims that American aid funds were misused or diverted to fund terrorist organizations.
As the 90-day aid review progresses, Nigeria may be forced to rely more heavily on domestic resources or seek alternative support from the World Bank and African Development Bank. The Nigerian government, meanwhile, continues to navigate a diplomatic and economic crisis with far-reaching consequences for its development and stability.