Saturday May 3, 2025

Nigeria is Facing a Rising Threat from Boko Haram, While Cuts from USAID are Harming the Economy and Response Efforts

Suspended USAID funding and international aid cuts are severely affecting humanitarian operations and Maiduguri’s economy, leading to layoffs, retail declines, and rising housing costs in a region already strained by the Boko Haram crisis.

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International aid cuts, particularly the suspension of work orders from the United States, significantly impact relief programs and local economies in areas like Maiduguri, Nigeria. This city has experienced growth due to the presence of over 280 NGOs and UN agencies responding to crises caused by Boko Haram, which has displaced millions of people. However, the withdrawal of funding from USAID has led to project shutdowns and layoffs, adversely affecting local workers like Daniel Hassan, whose income supported his family.

The decline in aid has created a ripple effect throughout Maiduguri’s economy, impacting retail businesses such as Today’s Super Stores. Once thriving due to the patronage of foreign aid workers, these stores now face financial challenges. The property market has also suffered; a surge in rental prices for NGOs has left many locals unable to afford housing. These funding gaps have increased vulnerability among aid-dependent populations and strained the local economy.

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