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HomeNewsHow US Pause on Foreign Aid May Impact Nigeria’s Health, Power, and...

How US Pause on Foreign Aid May Impact Nigeria’s Health, Power, and Other Key Sectors

Published on

United States President *Donald Trump* has signed an *executive order* halting foreign aid to ensure its alignment with U.S. foreign policy objectives under the *”America First”* agenda.

The directive, announced on *Sunday, January 26, 2025, by U.S. Secretary of State **Marco Rubio*, emphasizes that every U.S. foreign assistance program must be justified by its benefits to U.S. national interests.

This move will have *far-reaching consequences* for Nigeria, which has been a major recipient of U.S. aid in various critical sectors, including *healthcare, education, food security, disaster relief, and power infrastructure*.

### *Key Sectors Affected by the Aid Suspension*

#### *1. Healthcare*

Nigeria’s healthcare system heavily relies on *U.S. assistance, with over *$3 billion invested** by the U.S. government since 2015 in programs aimed at:
– *Reducing maternal and child mortality*
– *Expanding immunization coverage*
– *Preventing and treating diseases such as Malaria, HIV/AIDS, and Tuberculosis*
– *Strengthening Nigeria’s response to pandemics* (e.g., COVID-19, Mpox, and Lassa fever)

For example, in *May 2024, the **U.S. President’s Malaria Initiative (PMI)* delivered:
– *13.4 million bed nets*
– *6 million doses of malaria treatment*
– *11.8 million malaria rapid diagnostic tests*

The suspension of aid *could severely impact Nigeria’s ability to fight infectious diseases* and worsen an already fragile healthcare system.

#### *2. Education*

Nigeria has one of the world’s highest numbers of out-of-school children, with *10.2 million children* at the primary level lacking access to education.

Since *2014, the **U.S. government has invested $179.1 million* in improving basic education and youth empowerment programs.

With the withdrawal of this funding, Nigeria may experience:
– *Declining quality of education*
– *Increased number of out-of-school children*
– *Reduced support for teachers and learning infrastructure*

#### *3. Food Security*

Nigeria’s food production has been *severely impacted by the Boko Haram insurgency, leaving many families in Internally Displaced Persons (IDP) camps **dependent on U.S. humanitarian assistance*.

The *U.S. Food for Peace (FFP) program* has provided over *$438.2 million* in funding from *2018 to 2020*, supplying:
– *91,458 metric tons of food*
– *Cash-based assistance for vulnerable Nigerians*

Additionally, in *September 2023, USAID facilitated *$205 million in investments for Nigerian agribusinesses*, and in **June 2024, the U.S. awarded *$26.6 million in grants to 33 companies**, leading to:
– *$171.2 million in private-sector investments*
– *26,000 new jobs*
– *$400 million in domestic sales*

The aid suspension *could worsen food insecurity*, especially in conflict-affected areas of northern Nigeria.

#### *4. Disaster Relief and Flood Assistance*

In *September 2024, flooding displaced **over 611,000 Nigerians*, with:
– *201 deaths reported*
– *2,119 people injured*
– *83,457 houses destroyed*

In response, *USAID allocated $6.5 million* for humanitarian support, as part of a larger *$27 million U.S. aid package* for Nigeria.

With the aid freeze, *Nigeria could struggle to respond effectively to future natural disasters*, leaving vulnerable populations without critical support.

#### *5. Electricity and Power Sector Development*

In *July 2024, **USAID and Nigeria’s Ministry of Power signed an MoU* to strengthen Nigeria’s power sector. This agreement secured:
– *A N115.2 billion ($140 million) U.S. grant* for technical assistance
– *Support for power market transparency and efficiency*

Currently, *over 85 million Nigerians lack access to electricity, leading many businesses and households to rely on **expensive and polluting petrol and diesel generators*.

With the suspension of U.S. funding, *Nigeria’s power sector reforms could stall*, affecting economic growth and development.

### *Conclusion*

The *U.S. aid freeze* will have *significant consequences for Nigeria, affecting millions of people who depend on assistance for **healthcare, education, food security, disaster relief, and electricity*.

While the Nigerian government may seek alternative funding sources, the immediate effects of this suspension *could deepen economic hardship and social challenges* across the country.

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