Why US Withdrew $84k from Nigerian Spa Entrepreneurs

The United States has rescinded a financial commitment previously approved for a wellness venture in Nigeria—cancelling a grant worth $84,059 aimed at supporting spa and wellness entrepreneurs. The announcement was made on Monday by the Department of Government Efficiency (DOGE), a US agency tasked with improving transparency and effectiveness in government operations.

The scrapped grant had been channelled through the United States African Development Foundation (USADF), a key player in supporting grassroots enterprises across Africa. The Foundation, which operates in 21 African countries, has contributed more than $117 million to over 1,000 small and medium-sized African enterprises in the past five years. Its work has reportedly impacted more than seven million lives across the continent. The now-cancelled funding was intended to serve as a business incubator for spa and wellness professionals in Nigeria.

The reasons for the grant’s cancellation weren’t made explicit, but it comes amid a broader shake-up within the US government’s international development and diplomatic sectors—an effort spearheaded by DOGE under new leadership.

A Pivot in Policy?

In a separate announcement, DOGE highlighted reforms introduced by U.S. Secretary of State Marco Rubio, which effectively dismantled prior diversity and inclusion mandates within the State Department. According to the agency, previous administrations placed considerable weight on Diversity, Equity, Inclusion, and Accessibility (DEIA) practices—requiring diplomats to engage in everything from hosting DEIA-themed training events to structuring speaker panels based on racial or gender quotas.

“Diplomats were judged not just on performance, but on whether they avoided ‘gendered adjectives’ or promoted DEIA awards ceremonies,” DOGE noted in its update. These assessments also extended to encouraging foreign partners to prioritise racial and gender justice in law enforcement initiatives.

Rubio welcomed the rollback, calling the changes “important and historic reforms.” He added, “Now our incredible Foreign Service Officers will be evaluated on true merit, not on arbitrary immutable characteristics.”

While it’s unclear whether the spa grant was linked directly to these broader policy changes, the sudden withdrawal of funding raises questions about evolving US priorities in Africa. The spa and wellness sector in Nigeria, though niche, has seen growing interest in recent years as part of a larger health and lifestyle movement.

The USADF, for its part, has yet to issue a formal statement explaining the decision or what it might mean for future grants to Nigerian entrepreneurs.