THE THIRD NATIONAL DEVELOPMENT PLAN (1975-80)

THE THIRD NATIONAL DEVELOPMENT PLAN (1975-80)

The third national development represents a watershed in the evolution of economic planning in Nigeria. Apart from its huge initial investment of about #30 B (later revised to #43.313) which was ten times the size of the first one, its preparation involved extensive consultations with the private sector of the economy through the National economic Advisory council created in 1972.

The five cardinal objectives of the second National development plan were expanded into seven more specific objectives as follows:

                    i.         increase in per capita income

                  ii.         More even distribution of income

                iii.         Reduction in the level of unemployment

               iv.         Increase in the supply of high level manpower.

                 v.         Diversification of the economy

               vi.         Balanced development and

             vii.         Indigenization of economic activities.

Thus, the third plan was also an improvement over the second plan in terms of definition of objectives. The overall strategy of the plan was to utilize the resources from oil to develop the productive capacity of the economy and thus permanently improve the standard of living of the people.

The huge size of the plan was as a result of the optimism generated by the unusually favorable financial circumstances under which the country was operating on the eve of the plan. There had been sharp increases in both the price of crude oil as well as its level of production.

By March, 1975, the country's oil production was at a record level of 2.3 million barrels day and Nigeria's oil production was projected to reach 3.0 million barrels a day by the end of the plan period. This was not however, realized due to the prevailing world economic depression which resulted in production and price decline to the extent that the estimated valued of oil reports in the first year of plan in 1975/76 fell by about #I.OOB. A part from-this other problems that affected the plan include the effect of the growing congestion at the ports and accelerating inflation, which was not only distorting plan priorities but also eroding living standards all over the county.