Challenges Facing Nigerian NGOs Post-USAID Support

Nigerian non-governmental organizations (NGOs) that endeavor to remain effective into 2026 are experiencing an environment of enforced innovation. This situation calls for establishing new networks, finding alternative funding sources, and unifying efforts to advocate for sustainable financial support within the sector.

On January 20, 2025, the United States government announced Executive Order 14169 (EO 14169), which marked the conclusion of 65 years of USAID assistance to Nigeria. The aid began in 1961, initially providing funding to four major agricultural institutions within Nigerian universities located in Ibadan, Nsukka, Zaria, and Ife. An evaluation of USAID’s support to Nigeria from 2002 to 2024 reveals a consistent commitment to enhancing Nigeria’s development. The funding obligations escalated from $90 million in 2002—right after the nation returned to civilian governance—to a peak of $1 billion for the fiscal year 2023. Nevertheless, the financial obligations slightly decreased to $930.2 million by 2024.

Throughout most of these 65 years, USAID utilized a programming model in Nigeria that favored U.S. implementing partners, disproportionately directing funds towards fees for U.S. consultants, grants to American prime partners, and technical assistance firms from the U.S. Notably, at the time of USAID’s withdrawal, the mission was the only development partner with a clear localization policy developed in line with Grand Bargain commitments. This policy aimed to enhance funding accessibility for local Nigerian NGOs while reducing grant allocations to U.S. partners. Over a decade, USAID's official figures indicate that direct funding for local Nigerian entities rose from 4.2% in 2002 to 10.2% in 2022 as a portion of the total obligated funding.

Under the localization framework introduced by USAID, financial support was provided directly to Nigerian partners, which included various NGOs, alongside capacity-building initiatives and the development of networks within the civil society sector. NGOs involved in HIV/AIDS programs gained the most from this localization strategy.

When USAID culminated its operations in Nigeria in 2025, one notable program that concluded was designed to adapt insights from USAID’s localization experiences in development for application within Nigeria’s humanitarian context. This involved a formative study conducted by the Fritz Institute (USA), titled “Humanitarian Supply Chain Management – Partnership for Localisation.” This initiative was commissioned by USAID-Washington and executed with oversight from Nigeria's Federal Ministry of Economic Planning and Budgeting, with the development Research and Projects Centre (dRPC) providing vital technical support for enhancing research tools used in field administration.

The closure of USAID’s development and humanitarian operations in Nigeria meant that NGOs in the humanitarian sector missed out on insights from the Fritz humanitarian study. Consequently, several prominent Nigerian NGOs that previously received direct grants faced funding losses, along with numerous smaller sub-grant NGOs that operated under larger NGOs to provide community services. From April 2025 onwards, Nigerian NGOs operating in various sectors—including youth entrepreneurship, climate advocacy, public health campaigns, school safety initiatives, awareness programs targeting the rising number of unvaccinated children, and human rights activities—have been compelled to terminate programs, shut down offices, and lay off staff.

For the remaining Nigerian NGOs engaged in impactful work into 2026, this period is marked by a pressing need for innovation, building alliances, tapping into new funding sources, and collective advocacy for sustainable financial backing.

On October 24, 2025, three philanthropic foundations—MacArthur Foundation, Ford Foundation, and Luminate—held a significant dialogue to address the future of resilience for Nigerian NGOs without the support of large donor funding. Over five hours, representatives from NGOs, development partners, researchers, and industry leaders discussed and deliberated on key points raised during a keynote presentation by The Nextier Group to formulate strategic recommendations aimed at enhancing sustainability and resilience in the Nigerian NGO sector.

While many recommendations required NGOs to adopt more innovative strategies and approach new funders, they also emphasized the need for development partners to rethink how they provide strategic support related to sustainability and resilience.

At the dialogue's conclusion, I stressed the necessity of positioning NGO sustainability within a broader framework of localization in development assistance. Although USAID has departed, its commitment to localization—its key policy of downward accountability—should persist within Nigeria's official assistance strategies. I highlighted a strategic opportunity to strengthen Nigeria's NGO sector by integrating localization principles into the nation’s National Official Development Assistance (ODA) policy, which is currently being reviewed by the Federal Ministry of Budget and Economic Planning. This could include establishing guidelines that prioritize funding and capacity enhancement for local Nigerian NGOs active at both national and local levels across the spectrum of development and humanitarian programming.

As Nigerian NGOs brace for the challenges of 2026 amid dwindled grant options, there is an urgent need for tailored funding strategies akin to the small grants facilitated by the dRPC’s NGO Support Initiative (NSI) in collaboration with the Ford Foundation, ACT Trust Foundation, Global Affairs Canada, Irish Aid, and the Hungarian Government’s representation in Nigeria.

Additionally, there’s a promising opportunity for the government to allocate direct funding to community-based civil society organizations through fresh initiatives, such as the Renewed Hope Ward Development (RHWD) program. The positive aspect is that the grant awarding process for the RHWD commenced in 2026, but it currently permits applications solely from individuals through Ward Coordinators. Although this initiative has merit, expanding its scope to encompass community and self-help groups dedicated to enhancing the lives of vulnerable Nigerians could yield a far greater impact.