Nigeria has emerged as one of the leading African nations benefiting from USAID support, with total development assistance amounting to $876 million in 2024, according to the newly released Africa Sustainable Development Report 2025.
The comprehensive report, jointly prepared by the African Union Commission, United Nations Economic Commission for Africa, African Development Bank, and United Nations Development Programme, places Nigeria as the third-largest recipient of USAID funding on the continent.
Nigeria Among Top Recipients of USAID Support in Africa
The report showed that the Democratic Republic of Congo ranked first with $1.3 billion in USAID aid, followed by Ethiopia with $1.25 billion, while Nigeria’s USAID support positioned it ahead of South Sudan ($830 million) and Kenya ($824 million). Other top beneficiaries included Mozambique with $756 million and Sudan with $694 million.
However, despite Nigeria’s significant allocation in dollar terms, the aid represented just 0.21 percent of its Gross Domestic Product (GDP)—the second-lowest ratio among the top ten African recipients of USAID funding.
In contrast, South Sudan, though receiving less in absolute value, recorded the highest aid-to-GDP ratio of 6.05 percent.
According to the report, the top ten African nations collectively received about $8.1 billion in USAID support in 2024, highlighting the scale of American involvement in driving development efforts across the continent.
Regional Disparities and Financing Gaps
The report also underscored the uneven nature of development financing across Africa. It revealed that East and West Africa—regions hosting Nigeria, Ethiopia, and the DRC—face the largest sustainable development financing gaps, owing to their growing populations and economic complexities.
By contrast, North and Southern Africa exhibited smaller shortfalls due to relatively higher fiscal space and stronger economic structures.
It further emphasized that while USAID support to Nigeria and other nations remains essential, African countries must enhance domestic revenue mobilization and improve fiscal efficiency to reduce dependence on external aid.
Uncertainty Over 2025 USAID Programmes
While the 2024 data reflects strong engagement, Nigeria’s access to USAID support for 2025 has been clouded by uncertainty following a 90-day suspension of all USAID programmes by U.S. President Donald Trump.
The suspension, triggered by an executive order signed in January 2025, mandated a comprehensive review of all U.S. foreign aid commitments to ensure they align with Washington’s strategic and fiscal priorities.
The temporary freeze has put at risk over $602.95 million in USAID funding planned for Nigeria in 2025, particularly for programmes in health, governance, and economic development.
The health sector, which historically absorbs the largest share of USAID support to Nigeria, was allocated 89.27 percent of the proposed 2025 funding—reflecting the country’s continued reliance on foreign aid for essential medical interventions.
Health Sector Most Affected by Funding Freeze
Out of the planned 2025 allocations, $368 million was earmarked for HIV/AIDS prevention and treatment through the Global Health Programme, while $73 million was directed toward malaria control, and $33.25 million for maternal and child health initiatives.
Additional allocations included $22 million for tuberculosis and $22.5 million for family planning and reproductive health.
In contrast, only $2.5 million was set aside for water and sanitation projects, sparking concern among advocacy groups over access to clean water in rural Nigeria.
With the USAID funding suspension, many of these projects now face delays, potentially affecting millions of Nigerians reliant on health and development programmes.
Federal Government’s Response to the Suspension
To cushion the effect of the freeze, the Federal Government of Nigeria has approved a ₦200 million emergency intervention fund to sustain critical healthcare services, including vaccine procurement, antiretroviral distribution, and maternal health support.
Speaking on the development, the Coordinating Minister of Health and Social Welfare, Professor Ali Pate, confirmed that the government plans to absorb 28,000 health workers who were previously funded under USAID programmes.
According to him, Nigeria must begin to take ownership of its healthcare system and strengthen internal capacity amid shifting international aid dynamics.
“While the USAID support to Nigeria has been instrumental in driving health and governance reforms, we must now develop sustainable domestic funding models to secure our public health gains,” Pate said.
USAID Support and Security Priorities
Beyond health, the USAID’s 2025 proposed budget included $7.6 million to bolster peace and security efforts in Nigeria.
This allocation covered conflict mitigation ($2.8 million), military partnerships ($1 million), and citizen security initiatives ($3.05 million).
Experts noted that these efforts reflect America’s strategic interest in strengthening Nigeria’s stability and combating insurgency in the North-East.
Additionally, about $39.6 million was planned for economic growth initiatives, focusing on agriculture, private sector productivity, and clean energy.
This represents a gradual shift in USAID support toward economic diversification and resilience.
A Call for Self-Reliance Amid Shifting Global Aid
Analysts say the evolving global aid landscape underscores the need for Nigeria to diversify funding sources, strengthen institutional accountability, and enhance public-private partnerships.
As global donors reassess priorities, Nigeria’s ability to maintain development progress will depend largely on sustained policy reforms and transparent management of local resources.
Despite the uncertainties surrounding the 2025 allocation, experts agree that the USAID support to Nigeria remains pivotal for the country’s health, economic, and governance sectors.
However, they warn that excessive reliance on foreign assistance could expose Nigeria to external policy shifts that disrupt long-term development plans.
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