Nigeria’s economy has stagnated – Bill Gates

Bill Gates, Co-chair of the Bill and Melinda Gates Foundation, has expressed concern over Nigeria’s economic stagnation, highlighting that the nation’s debt surpassed 50% of its Gross Domestic Product (GDP) earlier this year—the first time this has occurred since 2001.

Gates made these remarks during his address at the National Economic Council meeting, which took place on Wednesday at the Council Chambers of the State House. He also disclosed that the Bill and Melinda Gates Foundation had invested over $2.8 billion in Nigeria, describing this as the Foundation’s “largest commitment in all of Africa.”

The philanthropist acknowledged the challenging decisions made by Nigeria’s economic leaders, such as the unification of the exchange rate, but emphasized that the next significant challenge is to increase revenue. He pointed out that while taxes are generally unpopular, people are more likely to comply if they see the government utilizing the funds to improve their lives.

“Nigeria’s economy has stagnated. Earlier this year, your debt exceeded 50% of your GDP for the first time since 2001. 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 its wealth,” Gates stated.

He continued, “Nigeria’s economic leaders have made some difficult but necessary decisions, like unifying the exchange rate. The next major challenge is raising revenue. I understand this is a politically sensitive issue. Nigerians are struggling—income levels have dropped, prices have surged, and as in many other countries, people are protesting. Taxes are never popular, and that’s true in America too. But they’re part of a social contract. People are more willing to pay taxes when they see the government using that money to improve their lives.”

Gates also addressed the state of Nigeria’s health sector, noting that despite global efforts to reduce child mortality by investing in primary healthcare, 2.2 million Nigerian children have never received a single vaccine. He pointed out that Nigeria spends only N3,000 per person annually on primary healthcare, with 70% of healthcare spending directed towards secondary and tertiary care, rather than primary care, which should be the priority.

“In just two decades, the world reduced the number of children who die before their 5th birthday by half, largely due to investments in primary healthcare, like routine immunization. But in Nigeria today, 2.2 million kids have never received a single vaccine. I think you’ll agree that if children aren’t immunized against deadly diseases, little else matters,” he said. “Primary care is the first—and sometimes the only—point of contact most patients have with the health system. Yet Nigeria spends just 3,000 naira on primary healthcare per person, per year. Seventy percent of your spending goes to secondary and tertiary care, compared to just 30% for primary care. That ratio should be reversed.”

Gates also encouraged Nigeria to adopt innovative crop varieties that offer shorter growing periods, higher yields, and greater resistance to pests as a solution to the country’s ongoing food crisis. He emphasized the need to expedite regulatory processes to approve these new crop varieties, noting that while Nigeria is the world’s largest producer of cassava, demand still outpaces supply.

“To make the most of new crop varieties, Nigeria needs to speed up the regulatory process to approve them. That process is important and should always be taken seriously. But you can move carefully and quickly,” Gates concluded.