Bill Gates, co-chair of the Bill and Melinda Gates Foundation, has raised concerns about Nigeria’s low tax collection, citing it as a significant obstacle to adequately funding critical sectors like health and education.
Speaking at a Pan-African youth dialogue on nutrition in Abuja on Tuesday, Gates emphasized that improving tax collection is essential for the government to deliver quality public services and build citizens’ confidence in these programs.
Gates pointed out that Nigeria’s tax collection rate is notably low, which limits the government’s ability to finance essential services. He stressed the importance of ensuring that health programs are well-managed and efficiently run to encourage citizens to support increased funding for these services.
“If citizens want the education and health services, they need to develop confidence that these programs are well-managed,” Gates said. He added that the Gates Foundation is actively involved in initiatives that demonstrate effective management of health programs, which could help drive public support for better funding.
Gates’ comments come amid discussions on fiscal reforms in Nigeria. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, recently revealed that his committee is proposing a law to increase the Value Added Tax (VAT) from the current 7.5% to 10%. Speaking on Channels Television, Oyedele described Nigeria’s revenue system as being in a state of crisis, with the country’s tax revenue profile significantly low.
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The proposed law, which aims to be implemented by 2025, also includes provisions for reducing personal income tax for individuals earning up to N1.5 million per month and lowering corporate income tax rates over the next two years. Oyedele highlighted the need to consolidate various taxes into a more streamlined system to improve efficiency and reduce the burden on taxpayers.
As Nigeria continues to grapple with funding challenges, Gates’ remarks underscore the critical need for effective tax collection and management to support the nation’s development goals, particularly in health and education.
