Bill Gates, co-chair of the Bill and Melinda Gates Foundation, recently underscored Nigeria’s critical tax collection issues during the Nutrivision 2024 conference in Abuja, a prominent Pan-African event centered on nutrition. Gates pointed out that Nigeria’s tax-to-GDP ratio remains alarmingly low at 10.86%, significantly trailing behind the regional average of 15.6%. This low rate, he stressed, directly impacts the government’s capacity to adequately fund essential services such as health and education.
Gates’ remarks come at a particularly challenging time for Nigeria. The country is grappling with a recent increase in fuel prices, rampant inflation, and a severe decline in the purchasing power of its citizens. These economic pressures exacerbate the difficulties faced by Nigerians, making it even more critical for the government to enhance its tax revenue and manage public funds more effectively.
He emphasized that the low tax collection is a major barrier to improving public services. For Nigeria to make meaningful progress, there needs to be a renewed trust between the government and its citizens. Gates noted that citizens must gain confidence in the government’s ability to manage funds efficiently, citing the Gates Foundation’s own efforts to demonstrate effective use of resources through successful health programs.
Additionally, Gates highlighted that Nigeria receives the highest level of intervention funds from the Gates Foundation in Africa, owing to its substantial population and pressing needs. Looking forward, he expressed optimism about Nigeria’s potential to revolutionize its agricultural sector. With better access to credit, comprehensive soil assessments, and effective advisory services for farmers, Nigeria could significantly boost its food production and transition from being a net food importer to a leading food exporter.
Gates concluded by stressing the importance of addressing the tax collection issue as a fundamental step toward achieving sustainable development and economic growth. He believes that improving the efficiency of public spending and building greater public trust are essential for Nigeria to overcome its current economic challenges and unlock its full potential.
