What Trump’s Foreign Aid Freeze Means for Nigeria’s Struggling Sectors
Each year, the United States of America doles out around $70 billion in aid to several countries, from Syria in the Middle East, to Rwanda in East Africa, and Nigeria, Africa’s most populous country.
However, on February 20, hours after his inauguration, President Donald Trump signed an executive order that put U.S. foreign aid on hold for 90 days.
“90-day pause in United States foreign development assistance for assessment of programmatic efficiencies and consistency with United States foreign policy,” the order reads in part.
The order came into effect on January 24, after Marco Rubio, who was newly confirmed as Secretary of State, said in a memo that “no new funds shall be obligated for new awards or extensions of existing awards until each proposed new award or extension has been reviewed and approved.”
While military aid to U.S. allies in the Middle East, Israel, and Egypt, as well as emergency food programs, were exempted, some of these aids are essential and life-saving, such as medical aid.
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As experts weigh in on how the pause in aid might impact Americans, the effect of that pause would certainly be felt across many countries, particularly developing nations in Africa and crisis-torn countries in the Middle East.
In Africa, Nigeria, between 2015 and 2024, received a total of $7.829 billion in aid from the United States.
What Does Stopping Aid Mean for Nigeria?
On the Economy:
While it is estimated that the U.S. spent $68 billion in foreign aid in 2023, Nigeria was among the highest recipients, receiving around $1 billion in economic aid.
With Nigeria experiencing what has been described as one of its worst economic crises in decades, as inflation continues to soar, a pause in some of the country’s aid from America could stifle needed infrastructure development. This year, the administration of President Bola Tinubu will operate on a budget of N49.79 trillion, which includes a deficit of N13.39 trillion. This deficit is to be financed through borrowings, grants, and foreign aid.
Humanitarian Needs:
In August 2024, the U.S. government released $27 million to the Nigerian government. The aid was part of the $536 million humanitarian aid package from the U.S. to Sub-Saharan Africa.
In a country with over 3.3 million internally displaced persons (IDPs) and 209,552 returnees living in harsh conditions, according to a report by the Displacement Tracking Matrix (DTM), humanitarian aid is needed to support millions living in extreme poverty in IDP camps.
Healthcare:
Perhaps one of the hardest-hit sectors, not just in Nigeria but across Africa, is the provision of essential and life-saving healthcare for millions who are critically in need.
About 20 years ago, U.S. Republican President George W. Bush asked Congress to approve $10 billion to help combat AIDS in Africa. That package became what is now known as the President’s Emergency Plan for AIDS Relief (PEPFAR), credited with saving at least 25 million lives in Africa. According to the World Health Organization (WHO), there are at least 25.6 million people living with HIV in Africa.
While South Africa and Mozambique have the highest number of patients, with 7.7 million and 2.4 million, respectively, Nigeria follows with 1.7 million people living with HIV.
The concern is the rapid spread of the disease across the continent. According to a report by UNAIDS, 469,000 new HIV cases were reported in Eastern, Southern, Western, and Central Africa in 2023. Sadly, nearly 400,000 deaths were recorded in these regions in the year under review.
Experts believe that the pause in aid will affect various HIV initiatives across the country and could exacerbate the number of fatalities.
Additionally, according to Dr. Jean Kaseya, Director-General of the Africa Centres for Disease Control and Prevention, Africa received $8 billion in aid from the U.S. government, 73% of which was for medical purposes.
Recall that in August last year, Mpox was declared a Public Health Emergency of Continental Security, with only six countries impacted by the virus at that time, compared to 21 today. A total of $1 billion was pledged by partners of Africa CDC to mitigate the spread of the virus, with the U.S. alone pledging $520 million—more than half of the total funds.
Noting that only 47% of the pledged funds have been redeemed, Dr. Kaseya argued that Mpox could even become the next pandemic without sufficient funding, particularly in light of the U.S. pausing aid.
In addition, the Trump administration’s executive order is also seeking to withdraw U.S. membership from the WHO, a move that has drawn criticisms.
Dr. Onyeoguzoro Alex Chiebuka, a general medical practitioner, told Neusroom, “The core duties of the WHO are to fight diseases and organize a unified front against any pandemic that threatens human lives.”
“The withdrawal of the USA will leave a large vacuum in terms of funding, and if this vacuum is not filled as soon as possible, developing countries like Nigeria and other regions of the world will be negatively impacted,” he said.
In a recent report, the WHO stated that the African continent accounted for 569,000 malaria-related deaths in 2023, representing 95% of the total global deaths (597,000) caused by the disease.
Of the 569,000 malaria-related deaths in Africa, four countries accounted for more than half of the fatalities. Nigeria, the continent’s most populous nation, recorded 30.9% of the malaria-related deaths, which translates to approximately 175,751 fatalities in 2023 alone. Other countries with high malaria death rates include the Democratic Republic of Congo (11.3%), Niger (5.9%), and Tanzania (4.3%).
“Simply put, reduced funding means reduced vaccines and medications used to prevent or treat these diseases, especially for the less privileged amongst us who can’t afford them,” Dr. Onyeoguzoro added.
Broader Impact:
The implications of halting foreign aid will extend beyond healthcare. Sectors such as education and security will also feel the consequences. With foreign assistance, many educational initiatives have been able to provide quality learning to underprivileged children, and security programs have supported counter-terrorism efforts in regions like the Lake Chad Basin. The pause in funding could slow down progress in these critical areas, leading to a more uncertain future for millions in Nigeria and across Africa.
