(a) Explain the term economic planning (b) Outline the problems of development plans in Nigeria.

Answer Details

(a) Economic planning. Economic planning is the deliberate and conscious effort by the government to coordinate economic decision-making over a period, setting definite objectives and directing the nation's scarce resources towards achieving them. It usually takes the form of a development plan covering several years.

(b) Problems of development plans in Nigeria

• Inadequate and unreliable data: shortage of accurate statistics makes realistic target-setting difficult.
• Shortage of skilled manpower: too few trained planners, economists and technicians to design and execute the plans.
• Inadequate finance/capital: insufficient domestic savings and heavy dependence on uncertain oil revenue and foreign aid.
• Corruption and mismanagement: diversion and embezzlement of funds meant for projects.
• Political instability: frequent changes of government lead to abandonment or change of plans midway.
• Over-ambitious and unrealistic targets: plans set goals beyond the country's actual resources and capacity.
• Poor implementation and monitoring: weak execution and lack of continuity in projects.