Nigeria has allocated $200 million in its 2025 budget to address shortfalls resulting from the United States’ suspension of aid, according to a Senate document reviewed by Reuters on Thursday.
The aid suspension follows an executive order signed by former U.S. President Donald Trump, significantly reducing American foreign assistance, and raising concerns for African nations that rely on U.S. humanitarian support.
Sub-Saharan Africa has been a major beneficiary of U.S. aid, receiving funding for initiatives in healthcare, food security, energy access, and economic development. Last year alone, the U.S. provided the region with over $6.5 billion in humanitarian assistance.
Nigeria is among the nations scrambling to fill the funding gap. In Ghana, President John Dramani Mahama has directed Finance Minister Cassiel Ato Forson to urgently bridge a $156 million shortfall after USAID funding was cut, according to a statement from his office.
The suspension of USAID funding is expected to hit key sectors in Ghana, affecting healthcare, education, and agriculture. In 2024, the agency committed $25 million over five years to improve healthcare services, but with the aid now on hold, hospitals and clinics may struggle to access essential resources, according to Dubawa.
While the full impact of the cuts is still unfolding, some African countries are already feeling the strain. The Department of Government Efficiency (DOGE), a Trump-era initiative led by Elon Musk, has blocked funding for Liberia, scrapping a $17 million project meant to help with tax policy.
In addition, Trump has frozen aid to South Africa over its controversial land expropriation law, which allows the government to reclaim land in the public interest without compensation.
