In early 2025, a U.S. Executive Order paused most foreign aid for 90 days, to realign it with new priorities. This led to the United States Agency for International Development (USAID) stopping work in countries like Nigeria, and terminating most awards. Though a court ruling later prevented a freeze on completed aid payments, the pause disrupted programs in recipient countries.
In Nigeria, USAID has been a major development partner for Nigeria, with a portfolio of funding and support that addresses critical challenges across health, education, economic growth, democracy, human rights, and governance, environment, peace and security and humanitarian sectors. The unexpected funding gap has put a strain on health system infrastructure, including laboratory networks, supply chain systems, and technical support for health systems. The funding freeze also jeopardizes the sustainability of long-term projects across key sectors such as maternal and child health, nutrition, HIV/AIDS, tuberculosis, malaria, and neglected tropical diseases (NTDs).
Over the past five years, USAID funding has primarily been allocated to the health sector, constituting 51.73% of total spending from 2020 to 2024. This funding is mainly distributed through the Global Health Supply Chain program which has significantly enhanced healthcare infrastructure, medicine accessibility, and disease response, particularly for malaria, HIV/AIDS, and maternal health. Humanitarian assistance received the second-highest allocation, accounting for 32.58% of total USAID funds during this period.
However, the funding freeze on Nigeria raises concerns about the sustainability of these critical interventions. This inevitably has significant implications for the people, local organizations, public health programs, and Nigeria’s broader socio-economic landscape. This analysis examines USAID funding in Nigeria, providing data-driven insights into funding trends, allocations over the past five years, funding amounts, recent top spending categories, project duration trends, and the overall impact on development.
To mitigate the impact of USAID funding freeze, the Nigerian government approves $200M to fill the gap of USAID cuts. However, sustaining critical programs will require increased domestic investment and strategic partnerships with other international donors. Some Key areas needing urgent attention include Agriculture and Economic Development, Education, Health Supply Chain, and Humanitarian Aid.
The USAID funding freeze presents significant challenges for Nigeria. The absence of follow-up funding raises long-term concerns. The Nigerian government, civil society, and international partners must develop sustainable alternatives to maintain the progress achieved over the years. Without strategic intervention, the gaps left by USAID’s withdrawal could undermine development efforts, placing millions of Nigerians at risk.
Use this link to read the detailed analysis of our report ANALYZING USAID FUNDING FREEZE IN NIGERIA.