The Nigerian government has taken a significant step towards reducing its dependence on foreign aid by announcing plans to take over the welfare of 28,000 staff laid off due to the Trump administration's suspension of funding to USAID. This move comes as a response to the funding freeze imposed by the Trump administration, which has had a devastating impact on healthcare programs in Nigeria and other regions dependent on USAID.

The decision was announced by Nigeria's Health Minister, Dr. Muhammad Ali Pate, on Channels Television's Hard Copy program. Dr. Pate acknowledged the significant contributions of the US government to Nigeria's healthcare sector, particularly in the fight against HIV, Tuberculosis, and Malaria. However, he emphasized the government's determination to take ownership of its healthcare sector and reduce its dependence on external aid.

The government plans to absorb the laid-off health workers into the country's healthcare system, a move that is seen as a step towards reducing Nigeria's reliance on foreign aid and taking control of its healthcare sector. This decision is also a response to the Trump administration's decision to cut funding for major health-related programs in Nigeria and other regions dependent on USAID.

The funding freeze imposed by the Trump administration has had significant consequences, including financial devastation to contractors, with many organizations forced to lay off staff and at risk of financial collapse. The freeze has led to over 100,000 job losses globally, including 51,000 in the U.S. In response, the Nigerian Senate allocated an additional N300 billion in the 2025 budget to support the health sector, including 28,000 affected health workers.

Nigeria's healthcare system remains primarily funded by private sources, with 70% of health spending coming from individuals. The government's decision to take over the welfare of the laid-off staff is seen as a move towards sustainability and reducing dependence on foreign aid. Dr. Pate stated that a thorough assessment had been conducted to quantify the support provided outside the government framework, and a bottom-up costing analysis was completed to determine what it would take for the public sector to absorb funding responsibilities for HIV, tuberculosis, and malaria programs.

The minister explained that the government wants to safeguard the progress made on HIV and is exploring alternative ways to sustain the partnership. Nigeria is also exploring public-private partnerships to bridge the gap in healthcare funding, despite allocating only 5.75% of its 2023 budget to healthcare, below the AU's recommended 15%.

The implications of this move are far-reaching, with Nigeria taking a significant step towards self-sufficiency in its healthcare sector. The decision is also seen as a response to the uncertainty surrounding foreign aid, particularly in the wake of the Trump administration's funding freeze. As Nigeria moves to salvage its healthcare sector, it remains to be seen how this decision will impact the country's healthcare outcomes and its relationship with foreign donors.