Nigeria’s access to a $602.95m grant for 2025 from the United States Agency for International Development is now uncertain, following a 90-day suspension of all agency programmes by President Donald Trump.
The fund freeze stems from an executive order signed by President 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 American aid programmes, with a focus on eliminating waste and ensuring funds align with US national interests.
With the aid freeze in place, funding for crucial sectors, particularly health, governance, economic development, and security, hangs in the balance.
The move has already disrupted multiple USAID-supported initiatives, with Nigeria among the countries facing uncertainty over planned allocations.
This comes as the Senate summoned intelligence chiefs to investigate allegations made by United States Congressman Perry Scott that USAID has been funding terrorist organisations, including Boko Haram.
Those summoned included the heads of the National Intelligence Agency, the Defence Intelligence Agency, the Department of State Services and the National Security Adviser, Nuhu Ribadu.
The resolution followed an Order of Urgent National Security raised under Order 41 by the lawmaker representing Borno South Senatorial District, Ali Ndume.
According to the proposed USAID budget for 2025, a staggering 89.27 per cent of the total $602.95m earmarked for Nigeria was designated for health-related programmes, highlighting the country’s heavy reliance on US support in the sector.
The largest share, $368m, was set aside for HIV/AIDS programmes under the Global Health Program, with $322m coming from GHP-State and $46m from GHP-USAID.
Other allocations included $22m for tuberculosis, $73m for malaria control, $33.25m for maternal and child health, and $22.5m for family planning and reproductive health.
However, funding for water supply and sanitation was set at just $2.5m, raising concerns about the accessibility of clean drinking water, especially in rural areas.
With USAID funding now frozen, the Nigerian government has taken emergency measures to cushion the impact, approving $200m to sustain healthcare services.
The Ministry of Finance confirmed that the funds would be directed towards essential vaccine procurement, antiretroviral drug distribution, and maternal health services, as fears grow over potential disruptions to critical health interventions.
Also, the Coordinating Minister of Health and Social Welfare, Ali Pate, said the Federal Government was planning to engage 28,000 health workers previously being paid under the USAID programme.
Pate said the government was ready to take ownership of the country’s healthcare sector amid the change in the policy of the US government.
The Federal Executive Council also approved an allocation of N4.5bn for the procurement of HIV treatment packs to support Nigerians living with HIV/AIDS.
Beyond health, democracy and governance initiatives in Nigeria had been allocated $7.5m in the USAID budget.
This covered funding for the rule of law, good governance, civil society engagement, and human rights programmes.
The suspension of the aid now casts doubt over whether these programmes will proceed as planned, particularly as the Trump administration reassessed its foreign policy commitments in Africa.
Among several sectors facing uncertainty is the peace and security category, with $7.6m earmarked for strengthening Nigeria’s security capabilities.
The proposed budget included $2.8m for conflict mitigation, $1m for military partnerships, and $3.05m for citizen security and law enforcement.
These allocations reflected US interest in stabilising Nigeria and countering terrorism threats from Boko Haram and Islamic State-West Africa Province in the northeast.
However, with funding now under review, there are concerns that any reductions could affect Nigeria’s ability to combat insecurity.
Also, economic growth programmes were due to receive $39.6m, the largest allocation outside the health sector.
Of this amount, $29.1m was earmarked for agriculture, while $1.5m was set aside for private sector productivity and $5m for clean energy projects.
These figures suggest a shift in US aid priorities towards economic sustainability and private sector engagement rather than direct humanitarian relief.
With USAID funding currently under review, the disbursement of these funds remains uncertain.