Nigeria can significantly improve its labour productivity and become one of Africa’s fastest-growing productivity stories within the next 15 to 20 years if it sustains reforms in education, skills development and the informal sector, according to Lead Economist and Fixed Income Strategist at CardinalStone, Olaolu Boboye.
Speaking during an interview on ARISE News, Boboye identified gaps in education, the dominance of the informal economy and limited investment in human capital as some of the major factors affecting Nigeria’s productivity levels.
He explained that Nigeria’s productivity challenge is linked to structural issues, including the quality of education, the number of people outside formal learning systems and the limited capacity of many workers to acquire specialised skills.
According to him, about 27 per cent of Nigerians have no formal education, while the country continues to record one of the highest numbers of out-of-school children in Africa.
“We need to revamp that curriculum. We need to make it more STEM-driven, right? Science, technology, engineering, and the likes,” he said.
Boboye said improving Nigeria’s education system would require not only curriculum changes but also stronger partnerships between government and the private sector to increase funding and improve learning outcomes.
“We need more collaboration with the private sector, more PPP funding. We need retraining of teachers. It’s a whole lot of work that needs to be done,” he said.
He also highlighted the impact of Nigeria’s large informal sector on productivity, noting that while it contributes significantly to economic activity and employment, it operates below the productivity levels of the formal sector.
“In that informal, it has been said that the level of productivity in the informal sector is two times lower than that of the formal sector,” Boboye said.
The economist stated that transitioning more businesses into the formal sector and equipping workers with relevant skills would be critical to improving output and income levels.
He pointed to countries such as Vietnam and China as examples of economies that improved productivity through consistent investment in education, skills and industrial development.
“If we can follow their footsteps, in 15 years to 20 years, Nigeria can close this gap materially and be one of the fastest-growing global productivity narratives in Africa,” he said.
Boboye also identified increased crude oil production as another key factor that could strengthen Nigeria’s economic position, stressing that production levels remain more important than oil prices and exchange rate movements in determining oil revenue.
He said Nigeria would have earned significantly higher revenue if it had consistently achieved its oil production target.
On the impact of recent economic reforms, Boboye acknowledged that while some macroeconomic indicators were improving, many Nigerians were yet to experience the benefits directly.
“Most of what the government has done… is yet to permeate into the micro-space,” he said.
He explained that economic reforms often require several years before their impact becomes visible at the household level, adding that sustained implementation would be necessary for citizens to fully benefit.
Boboye maintained that Nigeria’s productivity challenge can be addressed through long-term planning, stronger human capital development and policies that create an environment for businesses and workers to thrive.
Ojo Triumph
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