Examkin

Question

Difficulty: HardDevelopment Planning and Economic Reform Programs

In contrast to the rigid five-year medium-term National Development Plans implemented in Nigeria prior to 1990, the three-year Rolling Plan framework was adopted primarily to accomplish which of the following planning objectives?

  1. Allow continuous annual adjustments of development targets in response to resource constraints and macroeconomic fluctuationsAnswer
  2. B
    Transfer equity ownership of key state-owned enterprises to private investors to reduce government operational deficits
  3. C
    Establish unalterable twenty-year long-term structural targets that remain completely independent of annual budget cycles
  4. D
    Protect domestic infant manufacturing industries by placing total bans and high protective tariffs on imported consumer goods

Answer

The primary objective of adopting three-year rolling plans was to allow continuous annual adjustments of development targets in response to resource constraints and macroeconomic fluctuations.
The three-year rolling plan framework introduced in Nigeria in 1990 aimed to remedy the rigidity of previous fixed five-year development plans. Under a rolling plan system, planning targets were evaluated and adjusted every year alongside the annual budget, enabling planners to adapt to crude oil revenue fluctuations and economic shocks.

Step-by-Step Solution

1
Analyze the major limitation of Nigeria's fixed five-year National Development Plans (1962–1985).
Fixed plans were rigid and highly susceptible to unexpected shocks, such as volatile crude oil revenues, leading to widespread project abandonment.
Fixed plan targets could not be dynamically modified when actual government revenues fell far below projections.
2
Examine the structural design of the 3-Year Rolling Plan framework introduced in 1990.
Rolling plans maintained a 3-year horizon that was reviewed, updated, and extended by one year at each annual budget cycle.
This rolling mechanism ensured tight alignment between annual capital expenditure budgets and real-time economic conditions.
3
Evaluate option choices against distractor policy frameworks.
Continuous target adjustment is the defining feature of rolling plans.
Privatization alters asset ownership, perspective plans fix long-term horizons without annual revisions, and import substitution is a trade strategy.

Key Concept

Features and Rationale of Rolling Development Plans in Nigeria
Estimated Time:2m 0s
Rate this question

Topics

Development Planning and Economic Reform Programs