American billionaire and philanthropist Bill Gates recently stated that Nigeria’s economy is experiencing stagnation. He highlighted that the country’s debt has surpassed 50% of its GDP for the first time since 2001 earlier this year.
He noted that while the revenue-to-GDP ratio has increased, it remains lower than it was 15 years ago. As a consequence, Nigeria allocates less per capita to its citizens compared to other African nations that possess a fraction of its wealth. “Nigeria’s economy has stagnated. Earlier this year, your debt surpassed 50% of your GDP for the first time since 2001. Although your revenue-to-GDP ratio has improved, it is still below the levels seen 15 years ago. This has led to Nigeria spending less per capita on its population than other African countries with much less wealth,” he remarked.
During his attendance at the National Economic Council meeting at the State House in Abuja on Wednesday, Gates emphasized that following the unification of the exchange rate, the next significant challenge for Nigeria’s economic leaders is to increase revenue.
Bill Gates and Aliko Dangote were present at the National Economic Council meeting on Wednesday. Photo credit: Presidency. Gates acknowledged that tax payments are often unpopular globally, but he asserted that they are a necessary social contract for driving economic growth. He suggested that Nigerians would be more inclined to pay taxes if they observe the government using those funds to improve their quality of life.
Taxes are never popular. That’s true in America too. But they’re part of a social compact. People are more likely to pay them when they see the government spending that money to give Nigerians a better life.
“That’s what I want to speak about today. Because there are so many Nigerian leaders committed to investing in your people. And so many promising solutions in the pipeline,” Gates said.
He also emphasised the need to for the Nigerian government to invest in the health sector “because without health, there can be no opportunity.”
He added, “In just two decades, the world reduced the number of children who die before their 5th birthday by half. That’s largely thanks to investments in primary health care, like routine immunization. But in Nigeria today, 2.2 million kids have never gotten a single vaccine. I think you’ll agree that if children aren’t immunized against deadly diseases, little else matters.
“Primary care serves as the first—and often the only—point of contact for most patients within the health system. However, Nigeria allocates only 3,000 naira per person annually for primary health care. A staggering 70% of health spending is directed towards secondary and tertiary care, leaving only 30% for primary care.” The Co-Chair of the Bill & Melinda Gates Foundation also urged the Nigerian government to prioritize investments in nutrition. He stated, “Malnutrition is the root cause of nearly half of all child deaths. Malnourished children are more susceptible to severe diseases, and even those who survive malnutrition often carry its effects throughout their lives.”
