USAID Funding Freeze Sparks Massive Layoffs in Nigeria
In a devastating blow to Nigeria’s economy, thousands of workers have been laid off following the suspension of funding by the United States Agency for International Development (USAID). The freeze, which has affected numerous development projects across the country, has left many organizations struggling to sustain their operations, resulting in widespread job cuts.
Economic Confidential reports that USAID’s decision to halt funding was prompted by concerns over mismanagement and alleged misappropriation of funds by some local partners. The suspension has impacted critical sectors, including health, education, and agriculture, where USAID-funded initiatives were pivotal in providing employment and essential services.
Meanwhile, a report by Daily Trust states that one of the hardest-hit organizations is a prominent health NGO that relied heavily on USAID grants to run its programs. “We had to let go of over 300 staff members because we could no longer pay their salaries,” said the NGO’s director, who requested anonymity. “This is not just about job losses; it’s about the millions of Nigerians who will no longer have access to healthcare services we provided.”
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According to the report, the 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) project, among others.
Some of its implementing organisations are WaterAid, ActionAID, US CDC, Achieving Health Nigeria Initiative (AHNi) and Population Council.
The ripple effects of the funding freeze are being felt across the country. Small businesses that depended on contracts from USAID-funded projects have also been forced to shut down, exacerbating the unemployment crisis. “We were supplying medical equipment to several USAID projects, but now we have no work. I’ve had to lay off half of my staff,” lamented a business owner in Lagos.
The Nigerian government has expressed concern over the situation, calling for dialogue with USAID to resolve the issues that led to the funding suspension. “We understand the need for accountability, but the sudden halt in funding is causing more harm than good,” said a spokesperson for the Ministry of Budget and National Planning. “We urge USAID to reconsider its decision and work with us to address these challenges.”
Meanwhile, affected workers and their families are facing an uncertain future. “I have three children to take care of, and now I have no job. How will I feed them?” asked a former employee of an agricultural development project.
As the crisis deepens, stakeholders are calling for urgent intervention to mitigate the impact on Nigeria’s economy and vulnerable populations. The situation underscores the need for greater transparency and accountability in the management of donor funds to prevent such disruptions in the future.
