Total Amount Nigeria Stands to Lose if Trump Cuts USAID Funding

Total Amount Nigeria Stands to Lose if Trump Cuts USAID Funding

  • The U.S. government has suspended USAID funding for Nigeria, freezing $602.95 million in aid for health, security, and economic programs
  • The suspension follows a review of U.S. foreign assistance under President Trump’s executive order, causing uncertainty for critical projects
  • Nigerian authorities are scrambling to mitigate the impact, allocating emergency funds to sustain essential healthcare services and economic initiatives

Nigeria’s development and healthcare sectors are set to face a significant setback following the suspension of United States Agency for International Development (USAID) funds under a directive from U.S. President Donald Trump.

The executive order, which halts all USAID programs for 90 days, has thrown into uncertainty the $602.95 million earmarked for Nigeria in 2025.

Donald Trump
Donald Trump has ordered Elon Musk to audit and pause all US foreign aid for 90 days. Image: Getty
Source: Getty Images

Trump to gut US longstanding foreign policy

The suspension stems from a broader review of U.S. foreign aid, with the Trump administration seeking to reassess financial assistance to foreign nations, ensuring alignment with American interests.

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This freeze has disrupted funding for key sectors such as healthcare, governance, economic growth, and security in Nigeria, all of which were heavily reliant on USAID support.

Among the most affected programs is the country’s health sector, which was allocated 89.27% of the total USAID grant.

Various sectors to be affected by funds cut

A significant portion -$368 million- was intended for HIV/AIDS programs under the Global Health Program, while additional funds were set aside for malaria control, tuberculosis treatment, maternal health, and reproductive health services.

With USAID funding halted, the Nigerian government has had to intervene by approving $200 million to sustain essential healthcare services, including vaccine procurement and antiretroviral drug distribution.

Beyond healthcare, the freeze also affects Nigeria’s economic and security landscape.

Over $39 million was allocated to economic growth initiatives, particularly in agriculture and clean energy, while approximately $7.6 million was earmarked for strengthening the country’s security framework, including counterterrorism efforts against groups such as Boko Haram.

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With U.S. support now uncertain, Nigeria may be forced to seek alternative funding sources, such as the World Bank or African Development Bank, to sustain these programs.

US allegedly funding Boko Haram, others

Meanwhile, the suspension comes amid allegations from U.S. Congressman Perry Scott, who claimed that some USAID funds had been misappropriated, potentially ending up in the hands of terrorist organizations.

US congressman, Perry Scott
American lawmaker Scott alleged with no proof that the United States has been funding Boko Haram for years. Image: Getty
Source: Facebook

In response, the Nigerian Senate has summoned top intelligence officials to investigate the claims, with security agencies expected to provide confidential briefings on the matter.

Despite the controversy, the United States Embassy in Nigeria has reaffirmed its commitment to ensuring aid transparency, dismissing any concerns about funds being diverted to extremist groups.

The embassy emphasized that stringent monitoring systems are in place to track the allocation and usage of U.S. foreign aid.

If the aid suspension extends beyond the 90-day review period, Nigeria faces the risk of long-term financial constraints, particularly in health and security sectors.

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Breaking: US breaks silence as allegation swirls over USAID's alleged funding of Boko Haram

Experts warn that without USAID’s intervention, the nation’s development trajectory could suffer major setbacks, forcing policymakers to explore alternative strategies to mitigate the impact of lost funding.

Full list of countries whose citizens Trump is deporting

Earlier, Legit.ng reported that the United States had begun a large-scale deportation operation affecting over 1.4 million noncitizens, as the Trump administration moves forward with its immigration crackdown.

The deportations, targeting individuals with final removal orders, span more than 150 countries, making this one of the most extensive removal efforts in U.S. history.

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Source: Legit.ng

Authors:
Ibrahim Sofiyullaha avatar

Ibrahim Sofiyullaha (Editorial Assistant) Ibrahim Sofiyullaha is a graduate of First Technical University, Ibadan. He was the founder and pioneer Editor-in-Chief of a fast-rising campus journalism outfit at his university. Ibrahim is a coauthor of the book Julie, or Sylvia, written in collaboration with two prominent Western authors. He was ranked as the 9th best young writer in Africa by the International Sports Press Association. Ibrahim has contributed insightful articles for major platforms, including Sportskeeda in the UK and Motherly in the United States. Email: ibrahim.sofiyullaha@corp.legit.ng