Nigeria’s access to a $602.95 million grant from the United States Agency for International Development (USAID) for 2025 has been thrown into uncertainty following a 90-day suspension of all USAID programs by U.S. President Donald Trump.
The executive order, signed after Trump’s return to office in January 2025, mandates a comprehensive review of U.S. foreign assistance programs to assess their effectiveness and eliminate waste while ensuring alignment with U.S. national interests.
With Nigeria’s major health, economic development, governance, and security programs heavily dependent on USAID funding, the fund freeze has already disrupted multiple initiatives and raised serious concerns about the future of U.S. aid in the country.
Why USAID Funds Are Under Review
The suspension of USAID funding comes amid controversy over alleged misuse of American aid funds, particularly claims that USAID may have indirectly funded terrorist organizations.
U.S. Congressman Perry Scott recently alleged that USAID had been channeling funds to terrorist groups, including Boko Haram, prompting the Nigerian Senate to summon intelligence chiefs for an investigation.
Those summoned include the heads of:
- The National Intelligence Agency (NIA)
- The Defence Intelligence Agency (DIA)
- The Department of State Services (DSS)
- The National Security Adviser, Nuhu Ribadu
The Senate inquiry follows an urgent motion raised by Senator Ali Ndume (Borno South), reflecting deepening concerns over U.S. foreign aid transparency and security risks in Nigeria.
Breakdown of USAID’s $602.95 Million Allocation for Nigeria in 2025
According to the proposed USAID budget for 2025, 89.27% of the total $602.95 million was set aside for health-related programs, underscoring Nigeria’s significant reliance on U.S. funding for its healthcare sector.
Major Health Sector Allocations:
- $368 million for HIV/AIDS programs (Global Health Program – GHP)
- $322 million from GHP-State
- $46 million from GHP-USAID
- $22 million for tuberculosis
- $73 million for malaria control
- $33.25 million for maternal and child health
- $22.5 million for family planning and reproductive health
- $2.5 million for water supply and sanitation
The relatively low allocation for clean water and sanitation has sparked concerns about access to safe drinking water, particularly in rural communities.
Nigerian Government’s Response to the USAID Freeze
Faced with potential disruptions in health services, the Nigerian government has approved $200 million in emergency funding to sustain healthcare programs.
According to the Ministry of Finance, the funds will be directed towards:
- Essential vaccine procurement
- Antiretroviral drug distribution for HIV/AIDS patients
- Maternal health services
Additionally, Health Minister Ali Pate announced plans to engage 28,000 health workers who were previously paid under the USAID program.
“We are prepared to take ownership of our healthcare sector amid the U.S. policy change,” Pate stated.
Furthermore, the Federal Executive Council (FEC) has approved ₦4.5 billion for the procurement of HIV treatment packs to support Nigerians living with HIV/AIDS.
Impact on Governance, Security, and Economic Programs
Beyond healthcare, USAID had allocated $7.5 million to support Nigeria’s democracy and governance initiatives, including:
- The rule of law
- Civil society engagement
- Human rights programs
However, Trump’s aid freeze casts doubt on whether these initiatives will proceed as planned.
Security Sector Funding in Jeopardy
Nigeria was also set to receive $7.6 million from USAID for security and counterterrorism efforts, including:
- $2.8 million for conflict mitigation
- $1 million for military partnerships
- $3.05 million for citizen security and law enforcement
Given ongoing threats from Boko Haram and ISWAP, a funding cut in this area could weaken Nigeria’s security efforts.
Economic Growth Initiatives Also at Risk
In addition to security and governance, USAID had planned to allocate $39.6 million for Nigeria’s economic development, with:
- $29.1 million for agriculture
- $1.5 million for private sector productivity
- $5 million for clean energy projects
These figures suggest a shift in U.S. aid priorities from direct humanitarian relief to economic sustainability and private-sector-led growth. However, with funding now frozen, the future of these projects remains uncertain.
Nigeria’s Past USAID Funding and the Foreign Assistance Controversy
Between 2022 and 2024, USAID allocated approximately $2.8 billion to Nigeria, according to the U.S. Foreign Assistance Dashboard.
- In 2024: Nigeria received $780 million from USAID, out of a total U.S. aid budget of $41 billion distributed to 206 countries.
- In 2023: Nigeria was allocated $1 billion, as part of $72 billion in global U.S. foreign assistance.
- In 2022: Nigeria received $970 million from USAID, out of $74 billion disbursed globally.
These figures highlight Nigeria’s heavy dependence on U.S. aid, making the current funding freeze a major concern for the country’s development agenda.
Congressman Perry Scott’s Allegations and U.S. Foreign Aid Scrutiny
The aid suspension follows allegations from U.S. Congressman Perry Scott that USAID funds may have been misused or diverted to groups with links to terrorism.
In a viral video, Perry alleged that some U.S. aid money had been funneled to extremist organizations, including:
- ISIS
- Al-Qaeda
- Boko Haram
- ISIS-Khorasan (ISIS-K)
According to Perry, the U.S. government has been unknowingly funding terror networks, stating:
“Who gets some of that money? Does that name ring a bell to anybody in the room? Because your money, your money—$697 million annually—plus shipments of cash, funds Madrasas, ISIS, Al-Qaeda, Boko Haram, ISIS Khorasan, terrorist training camps. That’s what it’s funding.”
These claims have fueled growing skepticism in the U.S. regarding foreign aid accountability, leading to Trump’s foreign assistance review.
What’s Next for Nigeria?
With USAID funds under review, Nigeria may need to:
- Rely more on domestic revenue to sustain critical programs.
- Seek increased support from international partners like the World Bank and African Development Bank (AfDB).
- Engage diplomatically with the Trump administration to restore funding, particularly for essential healthcare and security programs.
- Prepare for possible long-term reductions in U.S. aid and adjust national policies accordingly.
Conclusion
Trump’s suspension of USAID programs marks a significant shift in U.S.-Nigeria relations, with major implications for health, security, and economic development.
If the funding freeze extends beyond the initial 90-day review period, Nigeria may be forced to rethink its reliance on U.S. aid and explore alternative funding sources to prevent disruptions to key services.
For now, uncertainty looms, and the Nigerian government must act swiftly to mitigate the impact of the aid suspension on its most vulnerable populations.
