Health & Wellness

USAID: Nigeria Scrambles to Cover $600 Million Health Funding Gap as EU Says It Cannot Bridge Shortfall

Published by
John Awhanjinu

In 2023, Nigeria received over $600 million in health assistance from the United States, covering about 20% of its national health budget. This funding, largely channeled through the U.S. Agency for International Development (USAID), was crucial for malaria prevention, HIV/AIDS treatment, maternal care, and immunization programs.

However, following the recent suspension of USAID funding, Nigeria and other African nations are now grappling with a massive financial shortfall that threatens public health programs.

EU Declares It Cannot Cover the Shortfall

As Nigeria and other affected countries seek alternative funding sources, the European Union has made it clear that it lacks the financial capacity to fill the void left by the U.S. aid suspension. A European Commission spokesperson stated:

“The funding gap is getting bigger, leaving millions in need. The EU cannot fill this gap left by others.”

This announcement underscores the severity of the crisis, as many African nations had hoped that European funding could at least cushion the impact of the USAID suspension.

Nigeria Allocates $200 Million to Mitigate Crisis

Recognizing the urgency of the situation, Nigerian lawmakers have approved an additional $200 million for the health sector in the 2025 budget. This allocation aims to mitigate the effects of the funding shortfall by supporting immunization programs, epidemic response efforts, and the procurement of essential medical supplies.

However, with the U.S. funding gap standing at $600 million, the additional budget covers only a fraction of the shortfall, leaving critical health programs at risk.

Health Programs Under Threat Across Africa

The suspension of USAID funding has led to disruptions in health services across Africa, including:

  • Uganda: Nearly two-thirds of the HIV program budget came from PEPFAR, the U.S. President’s Emergency Plan for AIDS Relief. With the funding halt, HIV clinics are facing closures, jeopardizing treatment for thousands.
  • Kenya: Approximately 54,000 healthcare workers risk losing their jobs due to the termination of USAID-funded programs, severely impacting healthcare delivery.
  • Tanzania: The sudden aid freeze has disrupted HIV/AIDS programs, leaving many without access to essential antiretroviral medications.
  • South Sudan: The suspension has halted food aid programs, exacerbating food insecurity in a nation already grappling with conflict and displacement.

Public health experts warn that without urgent international intervention, the situation could lead to increased mortality rates, outbreaks of preventable diseases, and a decline in overall healthcare quality across the continent.

What’s Next for Nigeria and Other Affected Nations?

With both the U.S. and the EU unable to meet Africa’s health funding needs, governments are intensifying efforts to secure alternative sources of financing. This includes engaging with multilateral organizations, international donors, and private sector partners to sustain key health programs.

Despite these efforts, the immediate future remains uncertain, raising concerns about the long-term impact on healthcare systems and vulnerable populations. If no viable solution is found, millions could face a decline in access to essential health services, worseninig the already challenging public health conditions.

John Awhanjinu

Awhanjinu John studied Economics at Redeemers University. He is keen on financial modelling and corporate finance.

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