The 1962-1968 development plan in nigerian failed because of

Analyzing the question: The question asks why Nigeria's First National Development Plan (1962-1968) failed to fully achieve its targets.

Concept: The First National Development Plan was Nigeria's first major planning effort after independence in 1960. It aimed to raise economic growth, develop infrastructure (roads, ports, Niger Dam at Kainji), and boost agriculture and industry. It was to be financed largely by:

• Internal sources (government savings, loans), and
• External sources (foreign aid, loans and grants).

Why it fell short:

• A large share of the plan's funding was expected from foreign sources, and much of that promised foreign aid did not come in as expected.
• Because the plan depended so heavily on foreign capital, shortfalls in external funding left many projects unfinished.
• The plan was also disrupted by political instability, including the 1966 coups and the start of the civil war in 1967.
• There was also a shortage of skilled manpower and weak statistical data.

Checking the options:

• A. Absence of indigenous bank: Incorrect. Nigeria already had indigenous banks and the Central Bank (established in 1958).
• B. Higher exchange rate: Not a recognised cause of the plan's failure.
• C. Non-availability of finance house: Not a major cause.
• D. Movement of colonial masters: Independence was in 1960, and the plan was made after the colonial masters left, so this isn't the reason.
• E. Over dependency on foreign capital: Correct.

Answer: E. Over dependency on foreign capital

Exam tip: For questions on Nigerian development plans, remember the common causes of failure with the memory aid "FIPS": Foreign dependence, Inadequate data and skilled manpower, Political instability, Shortage of funds. If an option mentions foreign dependence or funding problems, it is usually the right choice.