Nigeria’s access to a $602.95m grant for 2025 from the United States Agency for International Development is now uncertain.
This is following a 90-day suspension of all agency programmes by President Donald Trump.
The fund freeze stems from an executive order signed by President Trump after his return to office in January 2025, directing a comprehensive review of US foreign assistance.
The review aims to assess the effectiveness of American aid programmes, with a focus on eliminating waste and ensuring funds align with US national interests.
With the aid freeze in place, funding for crucial sectors, particularly health, governance, economic development, and security, hangs in the balance.
The move has already disrupted multiple USAID-supported initiatives, with Nigeria among the countries facing uncertainty over planned allocations.
This comes as the Senate summoned intelligence chiefs to investigate allegations made by United States Congressman Perry Scott that USAID has been funding terrorist organisations, including Boko Haram.
Those summoned included the heads of the National Intelligence Agency, the Defence Intelligence Agency, the Department of State Services and the National Security Adviser, Nuhu Ribadu.
The resolution followed an Order of Urgent National Security raised under Order 41 by the lawmaker representing Borno South Senatorial District, Ali Ndume.
According to the proposed USAID budget for 2025, a staggering 89.27 per cent of the total $602.95m earmarked for Nigeria was designated for health-related programmes, highlighting the country’s heavy reliance on US support in the sector.
With USAID funding now frozen, the Nigerian government has taken emergency measures to cushion the impact, approving $200m to sustain healthcare services.
The aid suspension comes amid increasing scrutiny over US foreign assistance, with Congressman Perry alleging that some American aid funds had been misused or diverted to unintended channels, including possible links to terrorist financing.
In a video that went viral, Perry said, “Who gets some of that money? Does that name ring a bell to anybody in the room? Because your money, your money, $697m annually, plus the shipments of cash funds in Madrasas, ISIS, Al-Qaeda, Boko Haram, ISIS Khorasan, terrorist training camps. That’s what it’s funding.”
The US House Committee on Foreign Affairs has since launched an investigation into the management of USAID funds in Nigeria and other recipient countries.
If financial irregularities are found, the US could permanently reduce or redirect foreign assistance, placing further strain on Nigeria’s development efforts.
However, the United States Embassy in Nigeria reaffirmed its commitment to ensuring that US assistance is properly utilised, dismissing any concerns about its funds being diverted to terrorist groups.
In a statement released on its X handle on Tuesday, the mission stressed that “comprehensive monitoring and evaluation systems are in place to help verify that US assistance reaches intended recipients.”
The American government also strongly condemned the atrocities committed by Boko Haram and other extremist groups in Nigeria and across the region, stating, “The United States condemns the violence and blatant disregard for human life perpetrated by Boko Haram and other terrorist groups in Nigeria and the region.”
Speaking during Wednesday’s plenary, former Senate Chief Whip, Ndume, called for an investigation into the US lawmaker’s claims that the USAID funded Boko Haram, urging the Federal Government to conduct a probe to verify whether USAID funds had been used appropriately.
Ndume urged the Senate to take Perry’s revelation seriously, given the devastation caused by Boko Haram.
