The development of a literate society is a pre-requisite for the emergence of a knowledge economy. The thesis advanced in this paper is that, without massive investment and promotion of literacy education, development that is targeted at the 17-point sustainable development goals (SDGs) will be bereft of citizen's empowerment, engagement, experiential values and evidential consequences in social change. Therefore, using a qualitative approach conceptual), this study explored the causal correlation that subsists between literacy education, emergence of knowledge economy and sustainable development. The study established that, literacy is basic in andragogical context for facilitating citizens' values re-orientation attitudinal change for the acquisition of vocational or functional skills and operational knowledge that is beneficial to individual as well as the collective drive for a literate society for the reduction of vulnerability and increase in sustainability in development respectively as expected in the SDGs. Consequently, the resultant outcomes will be a knowledge driven economy which is essential for the attainment of the sustainable development goals as envisaged by the United Nations declaration of 25th of September, 2015.