Trump’s Executive Order Freezing USAID Funds Triggers Economic And Social Setbacks In Nigeria

Trump’s Executive Order Freezing USAID Funds Triggers Economic and Social Setbacks in Nigeria

LAGOS – Uncertainty has gripped Nigeria following former U.S. President Donald Trump’s executive order freezing USAID funds, forcing thousands of USAID employees into compulsory leave and leaving critical development programmes in limbo.

The decision to halt USAID’s foreign aid has significantly impacted Nigerian NGOs and government-backed initiatives. Many organizations reliant on USAID funding have been forced to shut down, lay off workers, and cancel key humanitarian projects. This situation raises concerns about a looming development and humanitarian crisis.

However, in a separate ruling, a federal judge overturned Trump’s birthright citizenship restriction, reaffirming constitutional protections for U.S.-born children of immigrants.

USAID-Affiliated NGOs Forced to Halt Operations

Several USAID-supported organizations in Nigeria have already suspended activities due to the funding freeze. For instance, a family planning training program scheduled for Abuja was abruptly canceled just two days before its commencement due to lack of financial support.

USAID has played a crucial role in fostering economic growth, food security, healthcare, and governance in Nigeria. In 2023 alone, Nigeria received $1.02 billion in USAID assistance, making it the sixth-largest recipient of U.S. foreign aid.

Among the most affected sectors are:

Agriculture: The Feed the Future Initiative has enhanced farmers’ productivity and market access. Without continued funding, smallholder farmers may struggle with climate change adaptation and food production.
Trade & Infrastructure: USAID supports Customs reform and trade expansion, improving Nigeria’s transportation and business environment.
Water & Sanitation: The E-WASH project ensures access to clean water for millions, but its future remains uncertain.
Healthcare: USAID funds initiatives to combat tuberculosis, malaria, and HIV/AIDS while also enhancing family planning services.

Development Experts Warn of Devastating Impacts

Dr. Ejike Orji, Chairman of the Management Committee Association for Family Planning, expressed deep concern over the abrupt halt of USAID funding. He emphasized that the freeze has forced organizations to:

Cut staff salaries
Halt advocacy programs
Cancel critical health and training projects

Dr. Orji stated:

“We had everything in place—partners, participants, logistics. But without funds, we had to scrap the program. The consequences will be felt across vulnerable communities.”

Similar disruptions have affected advocacy initiatives in Lagos, Sokoto, and Bauchi, delaying efforts aimed at family planning and social reforms.

Prof. Oliver Ezechi, Director of Research at NIMR Lagos, warned of worsening health crises:

“Nigeria has one of Africa’s largest HIV/AIDS patient populations. Any disruption in funding will cause a rise in HIV-related deaths and new infections.”

Additionally, the freeze could exacerbate poverty, as USAID-backed agricultural programs are vital for small-scale farmers.

Nigeria’s Response: Seeking Alternative Funding Sources

Despite the challenges, the Nigerian government is working to mitigate the impact of USAID’s withdrawal. The Federal Executive Council (FEC) has approved:

$1.07 billion for healthcare sector reforms under the Human Capital Opportunities for Prosperity and Equity (HOPE) program
₦4.8 billion for HIV treatment and public health initiatives

Additionally, the Nigerian government has launched a transition committee to ensure continuity in health programs during the 90-day foreign aid suspension. The committee includes officials from the Ministry of Finance, Health, and Environment, aiming to secure alternative international partnerships and private-sector investments.

Trump’s Birthright Citizenship Ban Blocked by Federal Judge

While the USAID funding freeze caused alarm, another Trump policy faced legal opposition. A federal judge in Maryland blocked Trump’s executive order limiting birthright citizenship, citing its conflict with the U.S. Constitution’s 14th Amendment.

Judge Deborah Boardman ruled:

“No court has ever endorsed Trump’s interpretation, and this court will not be the first.”

Legal analysts argue that the birthright citizenship law, rooted in an 1898 Supreme Court ruling (Wong Kim Ark case), has protected children of immigrants for over a century. Trump, however, has vowed to appeal the ruling.

Final Thoughts: A Call for Self-Sufficiency

Although the USAID funds freeze has negatively impacted Nigeria, some experts believe this is an opportunity for the country to develop sustainable funding mechanisms.

As Nigeria seeks alternative development partnerships, local investments in agriculture, healthcare, and trade could help reduce dependency on foreign aid.