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Nigeria’s Healthcare Faces Crisis as USAID Cuts Billions in Funding

Eriki Joan UgunushebyEriki Joan Ugunushe
February 15, 2025
in Government
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Nigeria’s Healthcare Faces Crisis as USAID Cuts Billions in Funding
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The global freeze on billions of dollars in U.S. health and education aid, including crucial support for Nigeria, has sparked widespread concern. The Trump administration’s decision to halt the United States Agency for International Development (USAID) funding has raised fears that progress in fighting diseases like malaria, tuberculosis, and HIV/AIDS could be undone.

On Channels Television’s Hard Copy, Nigeria’s Coordinating Minister of Health and Social Welfare, Prof. Ali Pate, addressed the nation’s readiness to manage the fallout from the USAID shutdown. He also revealed the fate of 28,000 Nigerian health workers previously funded by the now-defunct program.

Table of Contents

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  • Nigeria’s Healthcare System Lacks Investment
  • USAID Funding Cuts Threaten Healthcare Gains
  • Public-Private Partnership Needed for Healthcare Reform

Nigeria’s Healthcare System Lacks Investment

Prof. Pate identified chronic underinvestment in healthcare infrastructure, medical personnel, and essential equipment as the primary challenge. According to him, Nigeria has failed to develop a unified National Health System, with fragmented efforts from the federal, state, and local governments.

Nigeria’s Healthcare Faces Crisis as USAID Cuts Billions in Funding

“Government revenue, as a percentage of GDP, has been very low,” Pate explained. “Health and education were not prioritized, but with the Renewed Hope Agenda, we are seeing deliberate efforts to invest in human capital.”

Although recent initiatives aim to improve healthcare, the system remains in dire need of investment. Countries like the U.S. and the U.K. allocate thousands of dollars per capita to healthcare, while Nigeria spends just $120—only 30% of which comes from public financing.

“Quality healthcare is not cheap. You must invest in it,” Pate emphasized. “For years, we haven’t done that, yet we expect world-class medical services.”

USAID Funding Cuts Threaten Healthcare Gains

The loss of USAID funding has put further strain on Nigeria’s already fragile healthcare system. With over 70% of Nigeria’s medications imported, the country now faces supply chain disruptions. Worse still, 99% of medical devices are also foreign-sourced, making local healthcare services heavily dependent on external aid.

Pate stressed that reversing this dependency requires long-term policy changes. “We are working to change the trajectory. It won’t happen overnight, but we are on the right path,” he said.

A major step was taken when all 36 state governors joined the federal government in signing the Renewal Investment Initiative. Last week, the Federal Executive Council approved nearly $1 billion to improve Nigeria’s healthcare infrastructure, focusing on primary care, cancer treatment, and medical education.

Public-Private Partnership Needed for Healthcare Reform

Despite the USAID freeze, government funding accounts for only 30% of Nigeria’s total healthcare expenditure, private sector contributions make up the remaining 70%. Pate called on hospitals, pharmaceutical companies, and private investors to support healthcare reforms.

“The private sector must step up,” he said. “We have an opportunity to build a healthcare system that serves not just Nigerians, but the entire continent.”

While the loss of USAID funding poses immediate challenges, Nigeria’s leaders remain committed to long-term reforms. The real test lies in whether the country can transition from donor dependency to a self-sustaining healthcare system.

As Nigeria navigates these challenges, the question on my mind is, Can the government’s renewed efforts fill the gap left by USAID, or will the nation’s healthcare sector suffer an irreversible setback?

Tags: —USAIDfederal characterfundingHealthcareNewsNigeria
Eriki Joan Ugunushe

Eriki Joan Ugunushe

Eriki Joan Ugunushe is a dedicated news writer and an aspiring entertainment and media lawyer. Graduated from the University of Ibadan, she combines her legal acumen with a passion for writing to craft compelling news stories.Eriki's commitment to effective communication shines through her participation in the Jobberman soft skills training, where she honed her abilities to overcome communication barriers, embrace the email culture, and provide and receive constructive feedback. She has also nurtured her creativity skills, understanding how creativity fosters critical thinking—a valuable asset in both writing and law.

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