Nigeria’s access to a $602.95 million grant from the United States Agency for International Development (USAID) for 2025 is now in jeopardy following President Donald Trump’s 90-day suspension of all USAID programs.
The suspension was triggered by an executive order signed upon his return to office in January 2025, mandating a comprehensive review of U.S. foreign aid to ensure its effectiveness and alignment with national interests.
The aid freeze puts funding for key sectors, including health, governance, economic development, and security, at risk. This has already disrupted several USAID-supported initiatives in Nigeria.
The situation is further complicated by allegations from U.S. Congressman Perry Scott, who claimed that USAID funds were diverted to terrorist organizations, including Boko Haram.
In response, the Nigerian Senate summoned heads of national security agencies to investigate the claims.
The proposed 2025 USAID budget allocated 89.27% of the $602.95 million to health-related programs, emphasizing Nigeria’s dependency on U.S. support in this sector.
This included $368 million for HIV/AIDS programs, $22 million for tuberculosis, $73 million for malaria control, $33.25 million for maternal and child health, and $22.5 million for family planning.
However, only $2.5 million was earmarked for water supply and sanitation, raising concerns about access to clean water in rural areas.
In response to the funding uncertainty, the Nigerian government approved $200 million to maintain healthcare services, including vaccine procurement and antiretroviral distribution.
The Federal Executive Council also allocated N4.5 billion for HIV treatment packs. The government is preparing to absorb 28,000 health workers previously funded by USAID.
The suspension also affects democracy and governance programs ($7.5 million), peace and security initiatives ($7.6 million), and economic growth programs ($39.6 million).
If the aid freeze extends beyond the review period, Nigeria may need to rely more on domestic revenue or seek support from other development partners like the World Bank and the African Development Bank.
The suspension follows growing scrutiny of U.S. foreign aid, with Congressman Scott alleging misappropriation of funds for terrorist financing.
The U.S. House Committee on Foreign Affairs is investigating these claims. Meanwhile, the U.S. Embassy in Nigeria reaffirmed its commitment to ensuring proper use of aid funds, emphasizing robust monitoring systems.
The allegations have sparked debate within Nigeria, with the Borno State government awaiting federal directives on the next steps.
In a recent interview on Al-Jazeera, Gen Musa questioned how terrorist groups in Nigeria manage to sustain their operations despite sustained military offensives.
He pointed to foreign financial and logistical support as a critical factor enabling the persistence of these groups.
The CDS revealed that many surrendered or captured Boko Haram fighters had been found in possession of foreign currency, raising serious questions about their funding sources.
“As we speak, over 120,000 Boko Haram members have surrendered, and most of them came with hard currency. How did they get it? How are they funded? How did they get the training? How did they get the equipment?” he asked.
The CDS has also raised alarms over the suspicious activities of certain NGOs, citing instances where some of them, ostensibly providing humanitarian aid, paid up to 10 years’ rent in advance for properties in insurgency-prone areas.
He questioned the rationale behind such long-term commitments, asking whether these NGOs had foreknowledge that terrorism would persist for another decade.
He then called on the United Nations to investigate the funding and training of Boko Haram terrorists.
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