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Difficulty: HardProblems and Challenges of Economic Planning in Nigeria

During the implementation of a national medium-term plan, executive authorities frequently alter designated capital spending allocations to fund politically motivated, unbudgeted regional projects. Which specific planning challenge in Nigeria is directly demonstrated by this practice?

  1. Plan indiscipline leading to arbitrary distortion of targeted priority projectsAnswer
  2. B
    Institutional friction between rolling budget mechanisms and fixed perspective plans
  3. C
    The inability of aggregate national growth to automatically generate economic development
  4. D
    Severe fiscal deficits caused exclusively by volatile international primary commodity prices

Answer

Plan indiscipline leading to arbitrary distortion of targeted priority projects
Plan indiscipline refers to the arbitrary departure from approved sectoral targets, priorities, and budget allocations—often caused by political pressures or uncoordinated executive extra-budgetary spending. This directly matches the scenario described.

Step-by-Step Solution

1
Analyze the scenario described in the stem.
The scenario highlights political interference and mid-stream alterations of allocated capital spending toward unbudgeted projects.
Identifying the key action (mid-stream diversion of planned expenditure) is necessary to determine the corresponding planning problem.
2
Evaluate economic planning concepts related to execution challenges in Nigeria.
Unapproved project inclusion and arbitrary fund diversion constitute 'plan indiscipline', a major bottleneck in Nigerian economic planning history.
Plan indiscipline occurs when executing agencies fail to strictly follow approved planning guidelines and sectoral priorities.

Key Concept

Plan Indiscipline in Economic Planning
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Topics

Problems and Challenges of Economic Planning in Nigeria