Bill Gates, the American business magnate and co-founder of Microsoft, highlighted the issue of low tax collection in Nigeria during his speech at a Pan-African youth dialogue on nutrition in Abuja on Tuesday. His comments came as part of his visit to Nigeria, where he was scheduled to engage with government officials, youth, and development partners to explore solutions to a variety of challenges, including health, agriculture, poverty, and nutrition across Africa.
During the event, Gates emphasized that Nigeria’s low tax collection is a significant obstacle to adequately funding essential sectors like health and education. He noted that for citizens to trust the government’s ability to deliver high-quality healthcare, there must be a firm commitment to managing health funding efficiently.
In his speech, Gates stated, “Over time, there are plans for Nigeria to increase government funding beyond current levels. However, the actual tax collection in Nigeria is quite low. If citizens desire better education and healthcare services, their confidence in the government’s ability to effectively manage these programs must be strengthened.”
He pointed out that with proper management, healthcare programs can set an example of how funds should be effectively utilized. Gates added, “Our foundation is involved in several initiatives that demonstrate how money can be spent wisely. For instance, running an efficient primary healthcare system requires well-performing employees and properly located centres. We need to avoid situations where some centres are underutilized while others are overloaded.”
Gates also expressed optimism about driving the credibility of Nigeria’s health programs. He believes that as these programs gain credibility, citizens will increasingly prioritize funding for primary healthcare services, especially as Nigeria gains more fiscal flexibility.
His remarks were made in the context of recent discussions on Nigeria’s fiscal challenges. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, had recently spoken on Channels TV about his committee’s proposal to increase the Value Added Tax (VAT) rate from the current 7.5% to 10%.
Oyedele pointed out that Nigeria’s revenue system, both tax and non-tax, is facing significant challenges, and described the fiscal situation as being in a state of crisis. He added that his committee has been tasked with three broad mandates: to assess the governance of the country’s finances, address issues related to borrowing, and improve coordination within the federal government and across sub-national levels.
