Nigeria gets $876m USAID support, third in Africa

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Nigeria has emerged as the third-largest African recipient of development assistance from the United States Agency for International Development, receiving a total of $876 m in 2024.

This was disclosed in the Africa Sustainable Development Report 2025, jointly produced by the African Union Commission, the United Nations Economic Commission for Africa, the African Development Bank, and the United Nations Development Programme.

According to the report, the Democratic Republic of Congo topped the list with $1.3 bn, followed by Ethiopia with $1.25 bn.

Nigeria ranked third, ahead of South Sudan, which received $830 m; Kenya with $824 m; Mozambique with $756 m; and Sudan with $694 m.

Although Nigeria received one of the largest allocations in absolute terms, the aid accounted for just 0.21 per cent of its Gross Domestic Product, the second-lowest ratio among the top ten beneficiaries.

In contrast, South Sudan, which collected less than Nigeria in total value, recorded the highest aid-to-GDP ratio at 6.05 per cent.

Overall, the top ten beneficiaries across Africa received $8.1 bn in USAID funding in 2024, with the DRC and Ethiopia accounting for a significant share of the total.

The report also highlighted the uneven distribution of financing needs across African regions.

It stated: “At the subregional level, East and West Africa exhibit the largest financing needs and gaps, driven by the presence of some of the continent’s most populous countries, including Nigeria, Ethiopia, and the Democratic Republic of Congo. North and Southern Africa report smaller SDG financing gaps, reflecting their relatively higher levels of development and broader fiscal space.”

The 2025 report emphasised that while aid flows remain vital, African countries must increase domestic resource mobilisation and enhance fiscal efficiency to bridge the vast financing gaps hindering progress towards the Sustainable Development Goals.

it was earlier reported that Nigeria’s access to a $602.95 m grant for 2025 from USAID became uncertain following a 90-day suspension of all agency programmes by President Donald Trump.

The funding freeze stemmed from an executive order signed by Trump upon his return to office in January 2025, directing a comprehensive review of US foreign assistance.

The review aimed to assess the effectiveness of American aid programmes, eliminate waste, and ensure that funds align with US national interests.

With the freeze in effect, funding for key sectors, particularly health, governance, economic development, and security, remains in limbo.

According to the proposed USAID budget for 2025, a substantial 89.27 per cent of the $602.95 m earmarked for Nigeria was allocated to health-related programmes, underscoring the country’s heavy reliance on US support in the sector.

The largest share, $368 m, was designated for HIV/AIDS initiatives under the Global Health Programme, with $322 m coming from GHP-State and $46 m from GHP-USAID.

Other allocations included $22 m for tuberculosis, $73 m for malaria control, $33.25 m for maternal and child health, and $22.5 m for family planning and reproductive health.

However, only $2.5 m was budgeted for water supply and sanitation, raising concerns about access to clean drinking water, especially in rural communities.

The suspension of aid has cast doubt on whether these programmes will continue as planned, particularly as the Trump administration reassesses its foreign policy commitments in Africa.

Among the sectors facing uncertainty is peace and security, with $7.6 m earmarked to strengthen Nigeria’s security capabilities.

The proposed budget included $2.8 m for conflict mitigation, $1 m for military partnerships, and $3.05 m for citizen security and law enforcement.

These allocations reflected US interest in stabilising Nigeria and countering terrorism threats from Boko Haram and the Islamic State–West Africa Province in the North-East.

However, with funding now under review, concerns have grown that any cuts could weaken Nigeria’s ability to tackle insecurity.

In addition, economic growth programmes were due to receive $39.6 m, the largest allocation outside the health sector.

Of this amount, $29.1 m was allocated to agriculture, $1.5 m to private sector productivity, and $5 m to clean energy projects.

These figures indicate a shift in US aid priorities towards economic sustainability and private sector engagement rather than direct humanitarian relief.

With USAID funding now frozen, the Nigerian government has taken emergency measures to cushion the impact, approving $200 m 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 amid growing fears of disruptions to critical health interventions.

Additionally, the Coordinating Minister of Health and Social Welfare, Professor Ali Pate, stated that the Federal Government plans to engage 28,000 health workers who were previously funded under the USAID programme.

Pate affirmed that the government was ready to take ownership of the nation’s healthcare system in light of the new US policy direction.

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