On Wednesday, American billionaire and philanthropist Bill Gates delivered a candid assessment of Nigeria’s economic situation during a National Economic Council (NEC) meeting held at the State House in Abuja.
He pointed out that the country’s economy has stagnated, with its debt surpassing 50% of its Gross Domestic Product (GDP) for the first time since 2001.
Gates emphasized the need for Nigeria to prioritize raising revenue, improving tax collection, and investing more in key sectors like health and nutrition to drive long-term development.
Gates, co-chair of the Bill & Melinda Gates Foundation, expressed concern over Nigeria’s rising debt levels, which he said had exceeded 50% of GDP earlier this year.
This is the first time such a high debt-to-GDP ratio has been recorded in more than two decades.
He noted that although the revenue-to-GDP ratio has increased, it still remains lower than what it was 15 years ago, which limits the country’s ability to adequately fund essential services.
“Nigeria’s economy has stagnated. Earlier this year, your debt exceeded 50% of your GDP for the first time since 2001,” Gates said.
“And while your revenue-to-GDP ratio has grown, it’s still lower than what it was 15 years ago.
“The result is that Nigeria spends less per capita on its people than other African countries with a fraction of your wealth.”
The philanthropist’s comments come at a critical time for Nigeria, as the country grapples with mounting debt and economic difficulties.
In recent years, Nigeria has been borrowing to finance various infrastructure projects and social programs, but the growing debt burden is raising alarms about the sustainability of these efforts.
The International Monetary Fund (IMF) has also warned Nigeria about the risks of excessive borrowing.
One of the key messages Gates delivered during his address was the importance of raising revenue through more effective tax collection.
He acknowledged that taxes are often unpopular, but stressed that they are necessary to fund public services and improve the quality of life for citizens.
“Taxes are never popular. That’s true in America too,” Gates said. “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.”
Gates pointed out that after the recent unification of exchange rates in Nigeria, the next big challenge for the country’s economic leaders is finding ways to raise more revenue.
He noted that citizens are more likely to comply with tax obligations when they see tangible improvements in infrastructure, healthcare, education, and other public services.
His remarks echo the sentiments of many economic experts, who have long advocated for Nigeria to broaden its tax base and reduce its reliance on oil revenues.
Nigeria’s tax-to-GDP ratio remains among the lowest in the world, at around 6%, compared to an average of 15-20% in other developing countries. Improved tax collection could significantly boost government revenue and reduce the need for excessive borrowing.
Bill Gates also used his platform at the NEC meeting to highlight the urgent need for Nigeria to invest in its health sector.
He argued that without a healthy population, economic growth and development are difficult to achieve.
“In just two decades, the world reduced the number of children who die before their 5th birthday by half,” Gates said.
“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.”
Gates noted that Nigeria spends just 3,000 naira per person, per year on primary healthcare.
He urged the government to shift its focus from secondary and tertiary care, which currently consume 70% of healthcare spending, to primary care.
This shift, he argued, would make healthcare more accessible to the majority of Nigerians, especially those in rural areas.
Another area of concern for Gates is Nigeria’s high rates of malnutrition, which he described as a leading cause of child mortality in the country.
According to Gates, nearly half of all child deaths in Nigeria are linked to malnutrition, and more than one-third of Nigerian children suffer from stunting—a condition that impairs both physical and mental development.
“Malnutrition is the root cause of nearly half of all child deaths,” Gates explained. “When children are malnourished, they’re more vulnerable to deadly diseases.
“Even the children who survive malnutrition never escape it. It stunts their brains and bodies in ways that can’t be reversed.”
Despite these grim statistics, Gates expressed optimism that progress could be made.
He pointed to ongoing efforts to fortify staple ingredients like cooking oil and wheat flour with essential nutrients, which have the potential to save thousands of lives and prevent millions of cases of anaemia each year.
“If scaled up, these fortified bouillon cubes could save 11,000 lives and prevent over 16 million cases of anaemia each year,” Gates said.
