The study examined the conceptual issues of public policy failure in Nigeria and how it affects economic development. The main objective of the study is to conceptually analyses public policy failures in Nigeria as a tract to economic underdevelopment. Contents method was used in the analysis. This means that the study uses conceptual analysis and rational analysis in assessing the public policies failures in Nigeria. The study was based on the thesis of elite theory. The study reveals that public policies are not effective in Nigeria. The paper also reveals the consequences of public policies failure in Nigeria. The study analyzed the concept of public policy and economic underdevelopment. The study concludes that constant changes of government in Nigeria, high level of corruption among government officials of these public policies agencies among others affected the smooth operations of public policies in Nigeria. The study therefore recommends that there should be continuity in public policy implementation even where there is change in government as government is a continuum; and parochial and primordial interests should be avoided during policy formulation and implementation in the country. There should be capital punishment in the country constitution to address the issues of corruption in Nigeria.