Nigeria’s Economy Is Stagnant, Says Bill Gates

American billionaire and philanthropist Bill Gates has said that the Nigerian economy is stagnant.

Earlier this year, he said that for the first time since 2001, the country’s debt had exceeded 50% of GDP.

He explained that although the revenue-to-GDP ratio has grown, it is still lower than it was 15 years ago.

The result, he says, is that “Nigeria spends less per capita on its population than other African countries with a fraction of its wealth.”

Read it: “Nigeria’s economy is stagnant. Earlier this year, your debt exceeded 50% of your GDP for the first time since 2001.

“And while the revenue-to-GDP ratio has risen, it is still lower than 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.”

Gates, who attended the National Economic Council meeting at State House in Abuja on Wednesday, noted that after the exchange rate unification, the next big hurdle for Nigerian economic leaders will be raising revenue.

While acknowledging that paying taxes has never been a popular habit anywhere in the world, Gates argued that they were social pacts necessary to restart the economy.

According to him, “Nigerians are more likely to pay taxes when they see that the government is spending that money to give them a better life.

“Taxes are never popular. That goes for America too. But they are part of a social contract. People are more willing to pay them when they see the government spending that money to give Nigerians a better life.

“That’s what I want to talk about today. Because there are so many Nigerian leaders who are committed to investing in your people. And so many promising solutions in the pipeline.”

He also stressed the need for the Nigerian government to invest in the health sector “because without health there can be no opportunities”.

He added: “In just two decades, the world has cut in half the number of children dying before their fifth birthday. This is largely due to investment in basic health care, such as routine immunizations. But today in Nigeria, 2.2 million children have never received a single vaccine. I think you will agree that if children are not immunized against deadly diseases, little else matters.

“Primary care is the first, and sometimes only, point of contact that most patients have with the health system. Yet Nigeria spends only 3,000 naira on primary health care per person per year. Seventy percent of spending goes to secondary and tertiary care, compared to just 30 percent for primary care.”

The co-chair of the Bill & Melinda Gates Foundation also advised the Nigerian government to invest in nutrition.

According to him, “Malnutrition is the main cause of nearly half of all child deaths. When children are malnourished, they are more vulnerable to deadly diseases. Even children who survive malnutrition never escape it.

“It stunts their brains and bodies in ways that cannot be reversed. New data shows that nearly a third of Nigerian children suffer from stunting.”

Despite all the negative effects of malnutrition, Gates noted that there is still reason for optimism.

“Nigeria already requires basic ingredients like cooking oil and wheat flour to be fortified with essential nutrients. Researchers are now working on fortifying bouillon cubes, too.

“If used on a large scale, these bouillon cubes could save 11,000 lives and prevent more than 16 million cases of anemia each year.”

Gates also highlighted how his ties to Nigeria have grown over the years: his foundation has invested more than $2.8 billion in the country, which represents its largest commitment in Africa.

“I have been coming to Nigeria for over two decades. In that time, I have seen Afrobeats legends perform. I have made friends with leaders from all walks of life. And I have met innovators who are changing the world.

“I am also proud to support their work. To date, our foundation has invested more than $2.8 billion in Nigeria. This is our largest commitment in all of Africa,” he said.

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