A critical Examination of Government Budgeting and Public Funds Management in Nigeria
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Date
2017
Authors
Ajibolade, S.O
Oboh, C.S
Journal Title
Journal ISSN
Volume Title
Publisher
Emerald Publishing Limited
Abstract
Purpose – The purpose of this paper is to attempt an empirical examination of government budgeting and
expenditure processes in Nigeria, a developing country. It examines the current state of budgeting and public
funds management (PFM) in Nigeria. It also examines the extent to which the government has used the
budgetary mechanism to effectively manage the nation’s economy.
Design/methodology/approach – The paper employed simple regression estimation technique for data
analysis. Time series data set of budgetary information was constructed from different archival sources over
a 16-years period (2000-2015), majorly the national Appropriation Acts, press releases, regulatory and
governmental reports, reports of Transparency International, World Bank and Central Intelligence Agency.
Findings – The findings confirm that the nation’s annual budgeting approach is defective and lags in
achieving its fiscal objectives. The budget indicates a state of poor accountability and transparency in PFM.
Findings also suggest that the level of economic development in Nigeria is not commensurate with the size of
government expenditure.
Practical implications – The paper draws the attention of the government to the need to restructure its
approach to budgeting and adopt a more resilient approach that suits its environment and economic
peculiarities in effort to ensure efficient management and accountability of public funds. The paper also offers
value to other developing countries. It provides empirical evidence that explains an aspect why the African
continent remains underdeveloped hitherto.
Originality/value – This paper lends a voice to the call for a restructuring of the Nigerian budgetary system
and its implementation strategy. It advocates for the adoption of an alternative budgeting approach that
matches Nigeria economic realities. The paper demonstrated that the traditional budgetary approach being
used by many developing countries is limited in certain ways and could hinder sustainable development.
Description
Staff Publications
Keywords
Government , Accountability , Public funds management , Budgeting
Citation
Ajibolade, S.O and Oboh, C.S (2017) A critical Examination of Government Budgeting and Public Funds Management in Nigeria. International Journal of Public Leadership