ABUJA: Nigeria’s access to a $602.95 million grant from the United States Agency for International Development (USAID) in 2025 has become uncertain following President Donald Trump’s decision to suspend all agency programs for 90 days. This freeze was instated by an executive order after Trump’s return to office in January 2025, mandating a thorough review of US foreign assistance. The review is focused on evaluating the effectiveness of US aid programs and ensuring they align with national interests and eliminate waste.
With this freeze, vital sectors including health, governance, economic development, and security face potential funding shortages.
This suspension has already disrupted various USAID-supported projects, with Nigeria among the nations affected by the uncertainty over future allocations. At the same time, the Nigerian Senate has summoned intelligence chiefs to investigate allegations raised by US Congressman Perry Scott that USAID funds have been used to support terrorist organizations, including Boko Haram.
The Senate resolution followed an urgent security order introduced by Ali Ndume, the lawmaker for Borno South. According to the 2025 USAID proposed budget, nearly 90% of the total allocation, or $538 million, was intended for health-related initiatives, underscoring Nigeria’s reliance on US aid in this sector. Key programs included HIV/AIDS initiatives, malaria control, and maternal health, but concerns have been raised about insufficient funding for water supply and sanitation.
In response to the freeze, the Nigerian government has approved $200 million to maintain healthcare services, including vaccines and antiretroviral drug distribution, as well as maternal health services. Furthermore, 28,000 health workers previously supported by USAID will be absorbed into government programs.
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Beyond health, democracy and governance initiatives, worth $7.5 million, and security efforts, including conflict mitigation and military partnerships, are also at risk. Economic growth programs set to receive $39.6 million—mainly for agriculture, private sector development, and clean energy—are similarly uncertain.
If the funding freeze extends, Nigeria may have to seek alternative sources of financial support from institutions like the World Bank or African Development Bank. USAID previously allocated around $2.8 billion to Nigeria from 2022 to 2024.
Amid this uncertainty, allegations regarding the misuse of USAID funds have emerged, with Congressman Perry accusing the agency of inadvertently supporting terrorism. USAID has denied these claims, emphasizing that extensive monitoring systems ensure proper use of funds.
Despite these assurances, Nigeria’s government is pushing for further investigation into the matter. The Senate has called for a closed-door briefing by security chiefs to address the allegations of misdirected funds and the potential connections to Boko Haram’s operations, a subject that has garnered increasing scrutiny from both local and international sources.
