Nigeria has emerged as the third-largest African recipient of development assistance from the United States Agency for International Development (USAID) in 2024, securing a total of $876 million, according to the Africa Sustainable Development Report 2025 jointly published by the African Union Commission, UNECA, AfDB, and UNDP.
The report shows that the Democratic Republic of Congo (DRC) led the continent with $1.3 billion, followed by Ethiopia with $1.25 billion. Other top recipients included South Sudan, Kenya, Mozambique, and Sudan, rounding out the continent’s top ten beneficiaries of USAID funding.
Despite its sizeable allocation, Nigeria’s aid represented just 0.21 percent of its GDP, the second-lowest ratio among the top ten recipients. By contrast, South Sudan, with a smaller funding amount, recorded the highest aid-to-GDP ratio at 6.05 percent. Altogether, the ten leading recipient nations accounted for $8.1 billion in USAID funding in 2024, with DRC and Ethiopia taking a substantial share.
The report also highlighted that East and West Africa face the continent’s largest financing gaps, largely due to their massive populations and development challenges — with Nigeria, Ethiopia, and DRC identified as key examples. In contrast, North and Southern Africa show smaller gaps, attributed to stronger fiscal capacity and higher economic resilience. It urged African nations to enhance domestic resource mobilisation and improve fiscal efficiency to reduce dependence on external aid and accelerate progress toward the Sustainable Development Goals (SDGs).
However, Nigeria’s access to future USAID funding remains uncertain. A proposed $602.95 million grant for 2025 now hangs in the balance following a 90-day suspension of all USAID programmes ordered by U.S. President Donald Trump in January 2025. The suspension — part of a sweeping policy review to align U.S. foreign aid with national interests and eliminate inefficiencies — has left key sectors such as healthcare, governance, economic development, and security in limbo.
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For Nigeria, health programmes dominate the proposed 2025 USAID budget, accounting for 89.27 percent of total funding. Of this, $368 million is earmarked for HIV/AIDS interventions, $22 million for tuberculosis, $73 million for malaria control, $33.25 million for maternal and child health, and $22.5 million for family planning. In comparison, only $2.5 million is allocated to water supply and sanitation, raising concerns about the country’s rural water access and hygiene infrastructure.
The funding freeze also jeopardises peace and security initiatives, with $7.6 million originally planned to enhance Nigeria’s counterterrorism and counterinsurgency operations against Boko Haram and ISWAP. Likewise, economic growth projects valued at $39.6 million — including $29.1 million for agriculture, $1.5 million for private sector competitiveness, and $5 million for clean energy expansion — could experience significant setbacks if the freeze continues.
In response, the Federal Government of Nigeria has approved an emergency $200 million intervention to sustain critical healthcare operations, including vaccine procurement and the continued supply of antiretroviral drugs. Health Minister Ali Pate announced that the government will also absorb 28,000 health workers previously supported by USAID, reflecting a strategic shift toward greater national ownership of Nigeria’s healthcare system amid shifting U.S. foreign aid dynamics.
For micro, small, and medium enterprises (MSMEs) and the broader economy, these developments hold mixed outcomes. While reduced aid inflows could strain public health and productivity — indirectly impacting small businesses — the redirected USAID priorities toward agriculture, clean energy, and private sector development could create new growth opportunities for SMEs once the funding suspension is lifted.
Overall, Nigeria’s strong standing among USAID beneficiaries underscores its continued strategic importance to U.S. development policy in Africa — even as evolving global priorities challenge traditional aid structures and push nations toward self-reliant, innovation-driven growth pathways.
