How USAID shutdown will impact Nigeria

…experts urge government to tap alternative funding as US scales back global aid

On Saturday, February 1, the United States Agency for International Development (USAID) website went dark. Evidently, Donald Trump, the American president who just returned to power after a four-year break, is making good his promise to US international support to other countries.

By Friday, February 7, 2025, all USAID direct hire personnel will be placed on administrative leave globally, with the exception of designated personnel responsible for mission-critical functions, core leadership and specially designated programs. Essential personnel expected to continue working will be informed by Agency leadership by Thursday, February 6, USAID said on its website when it came back alive.

Experts warn that if Trump pulls through his threat to shut down the agency, critical sectors in Nigeria such as healthcare, education, and economic development, would severely impact, further straining an already struggling system.

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USAID has been actively engaged in the country, implementing a wide range of programs aimed at addressing critical development challenges and promoting sustainable growth.

The agency spends millions of dollars in annual funding to Nigeria’s key sectors like health, agriculture, Water, Sanitation, and Hygiene (WASH), education, humanitarian assistance, and democratic governance since 1960.

In 2024, USAID’s funding to Nigeria included a notable commitment of $2.3 million for procuring 4.8 million doses of malaria tablets from Swiss Pharma, aimed at combating malaria in the country.

Additionally, the agency has provided nearly $100 million in previously announced funding for various urgent needs, which encompasses health initiatives and disaster preparedness efforts.

Auwal Rafsanjani, Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC), is worried about freezing such support as Nigeria has significantly benefited from international aid.

“The greatest concern we have is the essential support, such as life-saving drugs, that USAID provides. Even the little support from development partners has made a huge impact”, Rafsanjani said.

He lamented the mismanagement of Nigeria’s vast resources, noting that a staggering portion is stolen or diverted, making foreign aid crucial for the survival of many.

Rafsanjani urged the Nigerian government to reduce wasteful spending, tackle corruption, and reinvest in key sectors. “We must eliminate areas of corruption and mismanagement so citizens can benefit from the country’s wealth,” he said.

Beacuse Nigeria relies heavily on external funding to support critical health interventions, experts say a reduction in these resources would have a significant impact on maternal and child health outcomes, epidemic and disease preparedness, immunisation efforts, and overall public health, potentially halting progress towards achieving universal health coverage.

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A senior official from Nigeria’s Ministry of Foreign Affairs, who spoke on condition of anonymity, described the move as a “massive humanitarian setback.”

He recalled USAID vital role so far, in programs like the President’s Emergency Plan for AIDS Relief (PEPFAR), which provides antiretroviral drugs to thousands of Nigerians living with HIV.

“They have done a great job in ensuring access to healthcare, fighting diseases, and improving lives. It is heartbreaking to hear that the new U.S. administration wants to pull out of such a crucial initiative”, the official stated.

While acknowledging the likely impact from USAID’s withdrawal, experts, however, believe that it also presents an opportunity for Nigeria to prioritize self-reliance.

James Ezema, a development expert, stressed the need for Nigeria to diversify funding sources and reduce dependence on foreign aid.

“The federal government must immediately explore alternative funding sources, such as other bilateral and multilateral partners, to sustain critical development programs,” he said.

He also emphasized the importance of building local capacity to take over responsibilities currently managed by USAID.

“The government must invest in Nigerian institutions and ensure they are equipped to drive sustainable development”, he added.

Before Trump’s shutdown threat, USAID/Nigeria had issued a Notice of Funding Opportunity (NOFO) for local organizations to support Global Health Security activities, indicating ongoing financial support for health sector initiatives in Nigeria.

This funding is considered crucial as Nigeria continues to address significant public health challenges, including HIV/AIDS and malaria treatment programs.

Alieu Ceesay, Public affairs analyst, warned that USAID exit could have far-reaching effects beyond Nigeria, affecting economic development, food security, and governance across Africa.

“To overcome these challenges, we must take proactive steps to increase domestic revenue mobilization and improve financial management,” Ceesay advised.

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Experts estimate that around 30% of Nigerians benefit directly from USAID-funded programs, and that without this support, vulnerable populations—especially women, children, and marginalized communities—could face a worsening humanitarian crisis.

“The Nigerian government must develop a transition plan to ensure the continuity of essential services, increase efforts to mobilize domestic resources, and intensify the fight against corruption.

“The feeding bottle is no longer available. It’s time for Nigeria to take full responsibility for its development”, Ezema remarked.