The knowledge economy has great potentials for Nigeria’s economic and social developments by providing efficient ways of producing goods and services using knowledge as a basic raw material. Regrettably, though knowledge is available in Nigeria, it hasn’t been developed into a factor of production. This paper’s position is that Nigeria needs to improve the quality of education and libraries if it must become a knowledge economy and attain its vision of becoming one of the top twenty global economies by the year 2020 aptly titled “Vision20: 2020. This paper examined the characteristics of a knowledge economy, role of education and libraries in the knowledge economy, the place of academic and public libraries in a knowledge economy, the factors hindering education and library services in a knowledge economy, and the way forward.
The paper recommended the urgent need to set up a national and sub-national committees to among other things design Nigeria’s knowledge economy plan and its implementation strategies. Other recommendations include: increasing government’s investment in research and development by prioritizing funding for educational institutions, libraries and research centres; increasing ICT spending, promoting e-government, promoting ICT literacy through public-private partnership; creating an enabling environment by improving power supply, etc.