The Problem of Low Productivity with Nigerian Workers

5 min readJun 5, 2023

(References are after the article)

Once, I received an invitation to work as a consultant on a project in the Niger Delta. The project involved the construction of community schools. Unfortunately, several errors kept arising, leaving EU officials dissatisfied with the progress. To make matters more challenging, the contract required the employment of locals to meet the local content stipulation. Although there was an abundance of manpower in the region, the local workers lacked the necessary skills and expertise, while limitations restricted the number of external professionals who could be brought in to bridge the skill gap. The project found itself in a difficult situation, desperately seeking a solution. So, I was introduced to the team.

My solution was to institute a checklist system as a form of quality control mechanism. Recognizing that unskilled workers could benefit from clear instructions to follow, I proposed implementing a checklist system as a quality control mechanism. Even uneducated bricklayers could become more effective if equipped with a concise set of guidelines: ensuring proper mix ratios, constructing precise angles, and allowing sufficient time for mold removal. A comprehensive book detailing every step of the construction process became the cornerstone of this approach. Workers had to diligently mark each completed task before moving on to the next, creating a systematic approach to ensure quality.

It worked, underscoring the transformative power of measurement in compensating for a lack of skill. This very challenge of skill development reminds me of Henry Ford’s quest in 1908 (1). During a visit to a meat packing factory in Chicago, Ford serendipitously stumbled upon a breakthrough solution to a persistent challenge. Witnessing the seamless efficiency of meat processing on an overhead conveyor belt, he marveled at the division of labor. Each worker had a specific task, allowing for a streamlined assembly line system. Inspired by this revelation, Ford envisioned a similar approach for his car factory, assigning specialized workers to specific tasks as the vehicle advanced along the assembly line. This revolutionary methodology transformed the automotive industry, exponentially increasing production rates compared to the previous labor-intensive approach.

These two examples came to mind last week when I saw a big discussion on Twitter about the lack of productivity of Nigerians. A fellow brought out data from World Development Indicators, which showed that Nigerian workers are less productive and add much less value than their peers in other countries (2). He is right: Nigerians in Nigeria are much less productive than people in many other countries, including those in Africa.

Around the same time, this argument was going on, The Washington Post released an article about Indonesia (3). Just a few days before the dictator Sani Abacha died in Nigeria, a fellow dictator in Indonesia was stepping down. Indonesia was in turmoil (4). Frustrated, desperate, and hungry, Indonesians began targeting rice mills, engaging in looting of shrimp ponds, and even occupying golf courses to cultivate crops in unconventional areas. The rupiah, Indonesia’s currency, declined from its initial exchange rate of 9,500 to over 13,000 to the dollar. Companies closed down in droves. The dire consequences of this economic turmoil were vast: an estimated 20 million Indonesians became unemployed. Inflation was predicted to skyrocket to 100 percent, and at least half of the population was at risk of being pushed below the poverty line. The GDP per capita of Nigeria in 1998 was $468. Indonesia’s was $459.

25 years later, Indonesia has become a counterpoint to arguments saying that in Asia, democracy cannot coexist with Islam (5). In a country that was widely considered unproductive in the 1990s, it has become a manufacturing giant (6). Manufacturing companies all over the world have moved there in droves. Nike has at least 40 factories employing about 171,000 people (7). They produce apparel, footwear, and equipment. More than 70% of them are women, and the average age of the workers is below 30. At the moment, there are only five countries whose manufacturing sectors contribute more than 20% to their GDP: China (28.8%), South Korea (27%), Japan (21%), Germany (20.6%), and Indonesia (8). Their GDP per capita has since shot up to $4300 while Nigeria’s is stuck at $2000 (9) (10).

So, I ask: What does Indonesia have that Nigeria does not? Climate? Both countries are located in the tropical region, characterized by high temperatures and humidity throughout the year. They experience a wet and dry season pattern due to their proximity to the equator. Youth population? According to the World Bank, in 2020, the youth population in Indonesia accounted for approximately 19.7% of the total population (11). According to the United Nations Population Division, in 2020, the youth population in Nigeria accounted for around 19.1% of the total population.

Skilled labour? As I have shown, skill is developed. Just like those workers I interacted with in the Niger Delta, you create a system, get them to follow it, and, in no time, they imbibe the skills. That’s why factories are so great. Anyone can work in a factory. The repetitive yet structured nature of factory work cultivates a unique environment that fosters skills transferable to various sectors. If you go into any Indonesian factory and replace all the workers with Nigerians, the productivity will remain as normal under adequate supervision.

The difference here is the environment. Nigeria is an incredibly difficult place to do business, and there are some crazy things that happen as ‘normal’ in Nigeria that really don’t happen elsewhere. Kuti shared some messages with me yesterday. In it was a quote by an American official: “It’s hard to get used to the fact that Nigerian officials will lie to you straight up.” (12) In one of the comments about the low productivity of Nigeria, someone says he is unable to take his laptop home because the last time he did that, he was robbed. No one in his compound, he said, comes home with their laptops. How does that person work from home? As I move around Lagos, I am self-conscious when I work on my laptop device, and I am often cautioned to wait till I get home.

Few industries develop skills like the manufacturing industry. Research conducted by the National Bureau of Economic Research in the United States found that workers employed in manufacturing experience faster skill accumulation compared to those in other sectors (13).

Before businesses can consider establishing manufacturing plants in Nigeria, they require a level of certainty and dependability. However, the current state of affairs presents challenges. The ports suffer from congestion and corruption, while the roads are in poor condition and plagued by frequent checkpoints. Although Special Economic Zones may initially offer a solution by isolating common Nigerian issues, there is a risk of those problems eventually seeping into these zones. It is already happening.

Any leader who is able to solve this problem by providing the right environment for businesses to thrive would inadvertently solve the problem of labor productivity. Till then, when I see statistics about the low productivity of Nigerians, I simply shrug.