Nigeria’s economy has stagnated, says Bill Gates

Co-founder of Microsoft, Bill Gates

Co-chair of the Bill and Melinda Gates Foundation, Bill Gates, says Nigeria’s economy has stagnated, stating that earlier in the year, the country’s debt exceeded 50 per cent of its Gross Domestic Product for the first time since 2001.

Gates stated this during his address at the National Economic Council meeting held at the Council Chambers of the State House on Wednesday.

He disclosed that the Bill and Melinda Gates Foundation had invested over $2.8bilion in Nigeria, quoting the figures as the Foundation’s “largest commitment in all of Africa”

The philanthropist said while Nigeria’s economic leaders had made some difficult decisions by unifying the exchange rate, the next hurdle was to raise revenue, noting that although taxes were not popular, citizens would be inclined to pay if they saw the government spending the money to give them a better life.

“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.

“Nigeria’s economic leaders have done some difficult, but necessary things, like unifying the exchange rate. The next great hurdle is raising revenue. I understand this is a politically sensitive area. Nigerians are struggling. Incomes have fallen. Prices have soared. And like in many other countries, people are protesting.

“Taxes are never popular. That’s true in America too. 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,” he said.

Addressing the health sector, Gates said while the world had reduced the number of children who died before five by half through investments in primary health care, 2.2 million Nigerian children had never gotten a vaccine dose, pointing out that Nigeria spent only N3,000 on primary health care per person, in a year

“In just two decades, the world reduced the number of children who die before their 5th birthday by half. 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.

“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 health care per person, per year. 70% of your spending goes to secondary and tertiary care, compared to just 30% for primary care. That ratio should be reversed,” he stated.

He further urged Nigeria to embrace the new generation of innovative crop varieties that have shorter growing periods, higher yields, and greater resistance to pests, as part of solutions to solve the food crisis in the country

Gates noted that even though Nigeria was the world’s largest producer of cassava, demand still exceeded the supply while calling for a speed-up of regulatory processes to approve the new crop varieties

“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,” he said.