Bill Gates, co-chair of the Bill and Melinda Gates Foundation, has raised concerns about Nigeria’s low tax collection, stressing its impact on the country’s ability to finance essential sectors like health and education.
Gates made these remarks during a Pan-African youth dialogue on nutrition held in Abuja on Tuesday.
The American philanthropist and business magnate is currently in Nigeria for a series of events.
During the event, Gates highlighted the challenges posed by insufficient tax revenue in Nigeria, particularly in adequately funding critical public services.
He emphasized the importance of efficient management of health program funds to build citizens’ confidence in the government’s capacity to deliver quality healthcare.
“The actual tax collection in Nigeria is pretty low,” Gates stated.
He further explained that as citizens gain confidence in well-managed programs, there will be greater support for prioritizing the funding of primary healthcare.
“It’s exciting that we are driving the credibility of those health programs so that citizens will feel like primary healthcare is among the priorities that should be well-funded as fiscal flexibility improves,” Gates added.
His comments follow recent statements by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, who revealed that his committee is proposing an increase in value-added tax (VAT) from the current 7.5% to 10%.
Speaking on Channels Television, Oyedele outlined the committee’s three broad mandates, including improving governance, transforming revenue, and optimizing government assets.
Oyedele described Nigeria’s current fiscal situation as being in crisis due to its abysmally low revenue profile.
He detailed plans to propose a law to the National Assembly that would raise VAT rates to 10% by 2025, with subsequent increases planned.
To balance this, the committee also proposes reducing personal income tax and corporate tax rates over the next few years.
As Gates continues his visit, his remarks underscore the pressing need for Nigeria to enhance its tax collection system to ensure sustainable funding for crucial sectors and overall national development.
