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USAID Aid Freeze Threatens $602.95M for Nigeria

ABUJA, Nigeria – A $602.95 million USAID aid package for Nigeria in 2025 is at risk. President Donald Trump suspended all USAID programs for 90 days in an executive order signed in January 2025. The order initiates a review of U.S. foreign assistance.

The review aims to ensure funds align with U.S. interests and eliminate waste. The USAID aid freeze impacts Nigerian health, governance, economic, and security programs.

US Congressman Perry Scott alleged misuse of USAID aid funds, including claims of financial support to Boko Haram. Nigeria’s Senate summoned top intelligence officials to investigate. Former Senate Chief Whip Ali Ndume called for a full investigation, highlighting Boko Haram’s impact. The U.S. Embassy in Nigeria denied misusing funds, stating strict monitoring is in place.

Health programs face the largest impact. 89.27% of the proposed USAID budget (approximately $540 million) was for health. This included $368 million for HIV/AIDS treatment, plus funds for malaria, tuberculosis, maternal health, and family planning.

Nigeria’s government approved $200 million for essential healthcare. It plans to hire 28,000 health workers previously supported by USAID. The Federal Executive Council allocated N4.5 billion for HIV treatment packs.

USAID funding for governance, security, and economic growth is also uncertain. $7.6 million was planned for security. $39.6 million was planned for economic development, including agriculture and clean energy.

If the freeze lasts longer than 90 days, Nigeria may need to use domestic revenue or find other funding sources. The World Bank and African Development Bank are potential options.

A U.S. congressional investigation into foreign aid mismanagement could also affect future aid. This makes Nigeria’s development efforts uncertain.

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