Bill Gates, co-chair of the Bill and Melinda Gates Foundation, has expressed concern about Nigeria’s low tax collection. He ponted out that this is a big problem for funding essential services like healthcare and education. Gates made these remarks during the Nutrivision 2024 event, a Pan-African youth dialogue on nutrition held in Abuja.

Why is Tax Collection So Low?

Nigeria has one of the lowest tax-to-GDP ratios in the world, at just 10.86%. This means that compared to the country’s economy, very little money is collected from taxes. Gates explained that this is partly because the government and citizens don’t trust each other. The government doubts that people will pay their taxes, and the citizens don’t believe the government will use the money wisely. This lack of trust makes it hard to raise the money needed to improve public services.

“Over time, there are plans for Nigeria to fund the government more than it does today. The actual tax collection in Nigeria is actually pretty low,” Gates said. He added that improving how services like health and education are managed could help build trust and encourage people to pay their taxes.

Health Services as a Top Priority

Gates emphasized that Nigeria receives the most support from the Bill and Melinda Gates Foundation in Africa because of its large population and significant needs. He stressed that the foundation will continue to focus on primary healthcare, which has a big impact for the money spent. 

Gates believes that if people see that health programs are working well, they will be more willing to support these efforts with their tax money. “It’s exciting that we are building the credibility of these health programs, so that citizens will feel that primary healthcare should be well-funded,” he said.

Nigeria’s Potential in Agriculture

Gates also talked about Nigeria’s potential to improve its agricultural output. He said that with the right support, such as better access to loans, soil testing, and advice for farmers, Nigeria could more than double its food production. This change could help the country move from being a food importer to a leading food exporter.

“Nigeria today is a net food importer, but with the right support, it could more than double its food output, which would be transformative,” Gates said. He added that this would help bring in more money from other countries, which is especially important given the current exchange rate challenges.

Gates also noted that increasing agricultural productivity, especially in rural and northern areas, is key to improving incomes and reducing poverty. He suggested that using new technologies and better seeds could lead to an agricultural “miracle” that boosts the economy and addresses nutrition challenges across the country.