This paper focuses on the development of educational policy in Nigeria and its role in the development of middle-level and high-level manpower. The first part highlights some of the problems of past and present educational system and tries to relate them to the difficulties which the system posed as far as the development of manpower is concerned. Chief among these problems are the issues related to the development of education and the unprecedented explosion in demand for education. The second part examines the direction to which formal education is moving, or should move especially considering the fervent currently existing in the high demand for education. It is the contention of this paper that the goals and objectives which the country's educational system may be expected 10 meet in terms of middle and high-level manpower development must be recognized and constantly Come in mind by educational planners while there is the danger of surplus high-level manpower, there is a orderable short fall in the supply of middle level manpower. Necessary adjustment should he made with the view of effecting changes in the educational institutions.