Nigeria's Education Policy is quite laudable yet her investments in education are not too rewarding considering the deteriorating educational standards. The poor performance of the education sector in Nigeria, which is evident in the falling in standard of education and poor quality, has become very worrisome. What is the problem? Is the educational policy formulation process faulty? What are the implications for educational standard? These are the issues explored in this paper, based on literature review approach. The findings blame the falling in the educational standard and poor quality on the ineffective implementation of education policy engendered primarily by lapses in the policy formulation process. These lapses include lack of indigenous education policy, lack of adequate implementation strategy, non-involvement of stakeholders, especially the teachers, in the policy formulation process, lack of continuity of the policy implementation and lack of political will. These lapses have serious effects on the implementation of education policy and consequently on the standard of Education in Nigeria. The paper recommends the discontinuation of the National Policy on Education fashioned after the American system and adopt an educational policy which takes into consideration the cultural values of Nigerian people and Nigeria environment. Adequate human and material resources that will facilitate proper and result oriented implementation should be put in place before the implementation begins. In addition, stakeholders, especially the teacher should be consulted and be involved in the educational policy formulation and education policy should be nurtured to maturity before summative evaluation is carried out. Sustained political will and eradication of corruption are necessary for effective policy implementation and should be maintained.