How can development planning help to resolve the current economic hardship in Nigeria?

The term Development planning refers to the deliberate effort by the government
(central authority) of a country to help her maximize socio-economic welfare of the people
through efficient resource allocation. fiscal policies, fixed exchange rates, price controls, and
subsidized raw materials.

An overview of the NDP 2021-2025 adopted under the political administration of P.M.B.
revealed that an integrated and multi-sectoral development approach is needed to achieve the
four strategic objectives of the plan, namely;

 Establishing a strong foundation for a concentric diversified economy.

 Investment in critical physical, financial, science and innovation infrastructure.
 Building a solid framework and enhance capacities to strengthen security and ensure
good governance.
 Enabling a vibrant, educated and healthy populace.

The National Development Plan 2021-2025 (NDP) aims to lift 35 million people out of
poverty by 2025, lower unemployment rate especially for the youth population, and reduce
inequality which is the three-core value of development. Notably, the approach recognises
the multi-faceted and interwoven nature of sustainable development whereby the
government will focus on sectors with great potentials to generate jobs for the populace and
with multiplier effects on other sectors.

The economic hardship in Nigeria emanated from the removal of the fuel subsidy
after the newly elected president Bola Ahmed Tinubu stated in his inaugural address on 29th
May, 2023 that “the fuel subsidy was gone”. The subsidy on fuel was the difference between
the projected open market price and the pump price. This statement was made clearly to the
entire public with a different intent which was the rechannel of funds into better investment
in public infrastructure, education, health care facilities and Job creation to foster the
economic welfare of the people. However, the statement was followed with unexpected
events. The removal of fuel subsidy in 2023 is a supply shock that led to increased prices of
goods and services, exchange rate volatility, increased transportation costs, increased
production costs and decreased purchasing power. Arguably, every household and business
owners were compelled to compromise the level of consumption expenditure and profit
maximizing level that depicts the welfare of the populace. It is quite evident that after the
removal of fuel subsidy the prices of raw material was higher and the profit level of business
owners became shrunk

Therefore, Development planning can help to resolve the current economic hardship
in Nigeria in the following ways:

 Fiscal policies - increased prices of goods and services

 Fixed exchange rate - exchange rate volatility (floating exchange rate)
 Price control/rationing
 Subsidized raw materials