Bill Gates, an American billionaire and philanthropist, raised a flag about Nigeria’s economy being stagnant at a recent function of the National Economic council in Abuja. He pointed out that Nigeria’s total debt as a percentage of GDP exceeded 50%, which is the highest level since 2001 and continues to grow.
Although the country has improved its revenue to GDP ratio, it is still below revenue levels the country experienced 15 years ago. This dynamic results in Nigeria spending a lower per capita amount on its citizens than other African countries with lower incomes.
Bill Gates draws attention to stagnation of Nigeria’s economy
“Bill Gates flags Nigeria’s stalled economic growth: Growing debt above 50 percent of GDP and low revenue-to-GDP ratio, reported to impact health, education, and more,” said Doris Anyadike, a researcher on public finance and budget with the African Union.
According to Bill Gates, this situation is also having an impact on public health, nutrition, and other sectors. “Nigeria spends N3,000 per capita on primary health care each year; however, it spends much more on secondary and tertiary care,” he said.
He asserted that the Nigerian government needs to refocus spending toward primary health care in order to provide access to basic medical care to the population.
Economic Challenges and Tax Reform
One of the many challenges reported by Bill Gates is Nigeria’s escalating debt service payments, which is now greater than 50% of GDP. Bill Gates, stated that “despite charging slightly improved revenue collections,” the economic recovery is insufficient to fund the needs of the Nigerian population.
Gates pointed out that although not popular, taxation is a necessary solution as people are more likely to pay taxes when they see the government spending that money on roads, healthcare, education, etc. He suggested that with the effective spending of all tax revenue, Nigeria can substantially raise the standard of living for its people.
Gates also made mention of the long-term relationship between Nigeria and the Gates Foundation which has contributed over $2.8 billion to Nigeria. He called for investment in health and nutrition and suggested that improving primary healthcare access and addressing malnutrition are central to the long-term development of Nigeria.
If the nation does not act quickly, Nigeria could see its development and economy stagnate even further affecting healthcare, education and national development. Investing more in public health and education is necessary to obtain sustainable development.
Nigeria therefore needs urgent reforms to allow for an increase in economic stagnation while providing appropriate public health investment and healthcare access to realize its potential.
