Massive Job Losses Hit USAID-Supported Programs in Nigeria Following U.S. Funding Freeze

Thousands of Nigerians working on projects funded by the United States Agency for International Development (USAID) have lost their jobs following a 90-day funding freeze ordered by former U.S. President Donald Trump, Daily Trust has reported.

The job cuts have affected employees of USAID-funded organizations, including contractors, consultants, vendors, community volunteers, and staff working on programs in partnership with state and local governments. Both ad-hoc and direct USAID employees have been impacted.

Trump’s Executive Order and Its Impact

In January, Trump issued an executive order mandating a 90-day pause on U.S. foreign development assistance to evaluate program efficiency and alignment with U.S. foreign policy goals. The order froze new aid spending and halted existing grants and contracts. However, a temporary waiver was later granted for life-saving interventions, including HIV programs.

While some USAID-funded organizations ceased operations immediately, others that received waivers continued to offer limited services. The funding freeze has severely affected grantees and sub-grantees, leading to mass layoffs.

Nigeria’s Coordinating Minister of Health and Social Welfare, Muhammad Ali Pate, recently revealed that about 28,000 health workers in the country were paid through U.S. government support.

Programs and Organizations Affected

USAID plays a crucial role in supporting Nigeria’s healthcare, food security, economic development, governance, gender equality, renewable energy, and humanitarian programs. Some of its key interventions include malaria control, HIV and tuberculosis treatment, maternal and child health services, and technical support for capacity building.

Notable USAID-funded projects in Nigeria include:

• Data.FI
• Breakthrough ACTION-Nigeria
• Chemonics
• The U.S. President’s Emergency Plan for AIDS Relief (PEPFAR)
• Global Health Supply Chain Program-Procurement and Supply Management (GHSC-PSM)

Several organizations implementing USAID projects—such as WaterAid, ActionAid, the U.S. Centers for Disease Control and Prevention (CDC), Achieving Health Nigeria Initiative (AHNi), and Population Council—have also been hit by the freeze.

Job Losses and Uncertainty for Workers

The impact of the executive order was immediate, with mass layoffs beginning the same week it was issued. Over time, more workers—especially those involved in health and humanitarian programs—have continued to lose their jobs.

A statement on USAID’s website confirmed that most of its employees worldwide would either be placed on administrative leave or terminated. In the U.S., about 1,600 USAID workers are being laid off as part of a “reduction-in-force” effort. The agency is also working with the U.S. Department of State to assess the status of employees stationed abroad.

A source working with a USAID implementing organization in Northeast Nigeria described the situation as devastating. “Many community volunteers and ad-hoc staff have lost their only source of income. These volunteers were key to implementing health, nutrition, WASH (Water, Sanitation, and Hygiene), and agricultural projects, but with the suspension of funding, they have been disengaged,” the source said.

He further explained that even organizations granted partial waivers for emergency programs had to downsize their workforce. Additionally, many workers have not been officially dismissed but remain without salaries, uncertain whether they will resume work after the 90-day freeze.

The job losses have also affected local government workers whose salaries were funded through USAID programs, pushing even more people into financial hardship.

What’s Next?

While the U.S. government is still reviewing its foreign aid policies, thousands of Nigerian workers remain in limbo, hoping for a policy reversal that could reinstate funding and restore their livelihoods. If the suspension extends beyond 90 days, Nigeria’s health, economic, and humanitarian sectors could face long-term setbacks.