Nigeria has become the third-largest recipient of development assistance from the United States Agency for International Development (USAID) in Africa, securing a total of $876 million in 2024. This information was revealed in the Africa Sustainable Development Report 2025, jointly prepared 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 billion, followed by Ethiopia with $1.25 billion. Nigeria came third, ahead of South Sudan, which received $830 million; Kenya with $824 million; Mozambique with $756 million; and Sudan with $694 million.
Despite receiving one of the highest allocations in Africa, the report noted that Nigeria’s aid accounted for only 0.21 percent of its Gross Domestic Product (GDP), the second-lowest ratio among the top ten beneficiaries. In contrast, South Sudan, which received a smaller total amount, recorded the highest aid-to-GDP ratio at 6.05 percent.
Overall, the top ten beneficiaries across Africa received a combined total of $8.1 billion in USAID funding in 2024, with the Democratic Republic of Congo and Ethiopia taking a significant portion.
The report also highlighted regional disparities in development financing, noting that East and West Africa have the largest financing needs and gaps. 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 foreign aid remains essential, African countries must focus on improving domestic resource mobilisation and fiscal efficiency to address the vast financing shortfalls hindering Sustainable Development Goals (SDG) progress.
Earlier, it was reported that Nigeria’s access to a $602.95 million USAID grant for 2025 had become uncertain following a 90-day suspension of all agency programmes by President Donald Trump. The funding freeze followed an executive order Trump signed upon his return to office in January 2025, directing a comprehensive review of US foreign assistance.
According to the White House, the review was intended to “assess the effectiveness of American aid programmes, eliminate waste, and ensure that funds align with US national interests.”
With the suspension in place, funding for Nigeria’s critical sectors such as health, governance, economic development, and security remains uncertain.
The proposed USAID budget for 2025 allocated 89.27 percent of the $602.95 million for Nigeria to health-related programmes, showing the country’s heavy reliance on US support in healthcare. The largest share, $368 million, was assigned to HIV/AIDS initiatives under the Global Health Programme, with $322 million coming from GHP-State and $46 million from GHP-USAID.
Other allocations included $22 million for tuberculosis, $73 million for malaria control, $33.25 million for maternal and child health, and $22.5 million for family planning and reproductive health. However, only $2.5 million was set aside for water supply and sanitation, a situation that has raised concerns about access to clean drinking water in rural areas.
The ongoing suspension has cast doubt on whether these health and development programmes will continue as scheduled, particularly as the Trump administration reassesses its foreign policy commitments in Africa.
Among the affected sectors is peace and security, which had $7.6 million earmarked to strengthen Nigeria’s internal stability. The proposed breakdown included $2.8 million for conflict mitigation, $1 million for military partnerships, and $3.05 million for citizen security and law enforcement. These allocations were part of Washington’s efforts to help Nigeria counter terrorism threats from Boko Haram and the Islamic State–West Africa Province (ISWAP) in the North-East.
However, with the USAID funding now under review, analysts fear that any cuts could weaken Nigeria’s ability to sustain ongoing security operations and humanitarian responses in conflict-affected regions.
The economic growth sector was also due to receive $39.6 million, the largest amount outside health-related spending. Of this, $29.1 million was allocated to agriculture, $1.5 million to private sector productivity, and $5 million to clean energy development. These allocations signaled a shift in US aid priorities toward promoting economic sustainability and private sector involvement rather than relying solely on humanitarian assistance.
In response to the suspension, the Nigerian government has taken emergency measures to reduce the impact of the aid freeze. The Federal Government has approved $200 million to support healthcare delivery across the country. The Ministry of Finance confirmed that the funds would be used to maintain essential services such as vaccine procurement, antiretroviral drug supply, and maternal health care amid growing fears of disruptions in medical programmes.
The Coordinating Minister of Health and Social Welfare, Professor Ali Pate, explained that the government plans to engage 28,000 health workers who were previously funded through the USAID programme.
Pate said, “We are ready to take ownership of the healthcare system in light of the new US policy direction. The Federal Government will not allow health services to collapse because of funding changes.”
Experts have noted that Nigeria’s ability to manage the aid suspension will depend largely on how effectively it mobilises domestic revenue and builds partnerships with alternative donors. They also warned that prolonged delays in restoring US assistance could slow progress in public health, agricultural productivity, and clean energy access.
According to analysts, the aid freeze has raised broader questions about the sustainability of Nigeria’s reliance on external funding. Development experts argue that while foreign assistance remains useful, greater emphasis must be placed on improving tax systems, curbing corruption, and expanding private investment to ensure long-term economic resilience.
The ongoing review of US foreign aid by the Trump administration is expected to determine whether Nigeria’s previously approved $602.95 million package will be reinstated or revised under a new policy framework focused on “mutual accountability and measurable impact.”