Introduction on thursday 19 december 20, the minister of finance on behalf of the president of the federal republic of nigeria presented the 2014 federal budget proposal to the national assembly under the theme budget for job creation and inclusive growthposed. Nigeria plc, benin, edo state and nigerian breweries plc, ama, university of. In the process of planning and control, budgeting entails a distinct pattern of decisions in the organization which are capable of determining its objectives, purposes or goals, and how these goals are achieved by establishing principal policies. In the local government, the chairman forms the government and invariably has complete control over budget preparation but assisted by the finance committee and departmental heads. Nigerian west african neighbours ivory coast, gambia, ghana, burkina faso, mali, senegal, benin. Company income tax this is a 30 per cent tax on the profits of nonoil producing companies that operate in nigeria. Federal government of nigerias 2018 budget the 2018 budget is geared towards building on economic recovery accomplishments and achieving sustainable economic growth in the medium term, while ensuring increase in nonoil revenues and capital expenditure introduction president muhammadu buhari presented the 2018.
Budget padding, constituency projects, corruption and the. At the state level, it is the statutory responsibility of the governor to prepare and submit the budget. The scope and nature of the entire governmental operations is determined by the allocation of appropriation to the various programmes. In fact human nature is never evident than when men are struggling to gain a.
Budgeting and budgetary control in the manufacturing. Pdf budget processes and participatory budgeting in. Though in most occasion, the process varies from state to state. Some of these sectors are largely driven by private sector activity, while others require a great deal of public sector support. Nigeria recorded a government budget deficit equal to 2.
Constraints on budgeting and development plan implementation. Revenue generation needs to be enhanced through the blockage of leakages, improving tax efficiency and implementing clear fiscal reforms that support the business environment and therefore nonoil revenue. By this simple principle, we will increasingly grow and process our own food, we will manufacture what we can and refine our own petroleum products. Empirical analysis of nigeria budget linkedin slideshare. Nigeria is slowly but surely disappearing and a new era is rising in which we grow what we eat and consume what we make. The role of the executive and legislature in the budgeting. In order to secure best value in terms of allocation and utilization scarce resources in nigeria, we advocated the concept of value money audit, due process and. Nigerias 2014 budget tax and economic analyses january 2014. It was originally set up by decree no 12 of 1992 as the national planning commission and later amended by act 71 of 1993. Pdf the national assembly and the budget process in. A budget is an estimate of government income and expenditure for a specified period of time, usually one year. Budgeting process is central to any administration be it local, state or federal public or private because control of the purse is perhaps the most effective tool of coordination. Budget process in nigeria involves the budget planning, enactment, implementation and monitoring.
Federal republic of nigeria senate standing orders 2011, as amended. Pdf staff recruitment and selection process in the nigerian. The federal budget can be defined as a document from the government that sums up its revenue and expenditure for a fiscal year, which runs from january 1 to. The guardian nigeria newspaper brings you the latest headlines, opinions, political news, business reports and international news. Author cp designed the study, wrote the literature and the first draft of the manuscript. Many have blamed our poor socioeconomic and infrastructural development on low degree of budget implementation, which is a result of incremental budgeting process. A deficit budget is when government expenses are higher than the revenue, while the surplus is when the government revenue is more than the expenditure. A public budget has the following basic dimensions. Closing the gaps in budget process the guardian nigeria. Mar 09, 2014 arguments have raged on over the financial illiteracy hindering most nigerians from full participation in government and, clearly understanding governance and government activities across all spheres of life. Analysis of federal government of nigerias 2018 budget. Poor budget implementation in nigeria is a huge indictment on both the executive and legislative arms of government at the local, state and federal level which can be traced to the implication of cash basis of accounting as a technique for recording financial transactions in.
Nigeria budget since 2005 pdf the 2015 budget of the federal government of nigeria fgn was. The role of the legislature in the budget process in nigeria. Nigeria ekhator victor eghe 1 and chima paul 1 1department of public administration, faculty of management sciences, university of abuja, nigeria. Legislatures and the budget process national democratic institute.
Nigeria the budget is normally presented by the executive arm of the government to the legislative arm before it becomes appropriation bill. Sep 26, 2016 home analyses the role of the executive and legislature in the budgeting process in nigeria the formal unveiling of orderpaper. An analysis of the federal budgeting process in nigeria 1. A budget is an essential aspect of individual,organisation and government financials. Budget preparation and implementation in the nigerian. Recent trends and innovations 2 oecd journal on budgeting volume 7 no. Get free research paper on challenges of budget implementation in nigeria project topics and materials in nigeria. The paper therefore recommends zero base budgeting to nigeria at all levels. For the first time ever, the 2017 budget was collated using a webbased application that allowed ministries, departments and agencies to upload their budget proposals to the new budget. There is a need for a comprehensive, overarching budget. However, in nigeria, experience was derived from a more mature british system because, the national system was adopted during the time of independence between 19571960 in spite that nigeria did not fail to encounter avoidable problem in the budget. Pdf staff recruitment and selection process in the. Federal republic of nigeria standing orders of the house of representatives 2011, 8th edition as reprinted july 2014.
It is a list or quantitative expression in a summary of likely income and expenses. Oct 08, 2012 the fourth phase encompasses the entire budget process. The national assembly and the budget process in nigerias fourth republic. Gdp, growth, inflation, deficit, unemployment, etc. Pdf budget preparation and implementation in the nigerian. Their re spective role and power in the budget process differ from country to country and are influenced by many factors, including the wider. Nigeria is aspiring to be among the top 20th economies of the world by the year 2020 and has just adopted zbb in her budgeting processes and implementations. D, nnamdi azikiwe university awka, faculty of management sciences, nigeria, fn. Budget and implementation of public policy in nigeria. Budget implementation and economic development in delta state. Budget planning is conducted by nonelected public officers who are not accessible to citizens no prebudget statement, setting out governments policy objectives and macroeconomic outlook, is made available to the legislatures or the public for consideration and debate. Budget process therefore refers to the procedure by which governments create and approve a budget. Like in other countries of the world, the budget process in nigeria has four stages namely formulation, approval, implementation and control.
An analysis of the federal budgeting process in nigeria. Aug 06, 2012 an analysis of the federal budgeting process in nigeria 1. Budget implementation in nigeria is a critical problem. A good financial knowledge is required in todays daily activities if we are to dictate fraud before it happens in our various businesses and avoid the siphoning. Oct 12, 2012 the budget process in nigeria is closed and shrouded in mystery. Pdf created with fineprint pdffactory trial version. However, the existing legal framework is inadequate and includes contradictory and ambiguous provisions. If, on the other hand, it decides that the private sector is better able to handle healthcare, government must provide the same guidelines that exist in those countries its senior officials and business friends find.
This is approved for students in accountancy, business, computer science, economics, engineering, arts. Zbb is a budgeting process that distributes resources based on program efficiency and priority areas with appropriate. Arising from the result of this process, the committee concluded that by 2010, nigeria would have transformed into a country which is a united, industrious, caring and godfearing democratic society, committed to making the basic needs of life affordable for everyone, and creating africas leading economy vision 2010 reports, 1997. Nigeria has moved up 24 places from 169 to 145 on the 2018 world banks ease of doing business ranking surpassing the target of 20 places set by government. This page provides nigeria government budget actual values, historical data, forecast. The nigerian budget process 5 income tax, customs and excise duties and levies, while the federation account vat pool holds proceeds from value added tax vat. Budget preparation and implementation in the nigerian public sector article pdf available in research journal of finance and accounting 416. The federal ministry of budget and national planning is one of the federal ministries of nigeria. A budget is simply a document identifying and stating particular objectives with associated expenditures linked to each objective budgets serve as a basis for governments financial activities, all other components of financial management in the public sector are related to the budget. General issues and challenges of budgetary process in nigeria 5. Budget processes and participatory budgeting in nigeria. Nigeria is named as one of top 10 reforming countries in the world. Since the return of democratic rule in nigeria in 1999, efforts at participatory governance have never received the full backing of the ruling class, because they see it as a threat to their collective interest. In 20, nigeria was ranked 153 out of 186 countries.
In order to make the guide useful, descriptions of the budget process and tools are simple and straightforward. This paper examines the national assembly and the budget process in nigeria s fourth republic with a view to tackling the perennial problem of late presentation of the appropriation bill by successive presidents to the national assembly. Federal government of nigerias 2018 budget of consolidation. Problems and prospects of budget implementation in nigeria. Pathway to sustainable budget implementation in nigeria udeh francis nnoli 1, sopekan sam adeyemi 2, oraka azubuike onuora 3 1 udeh francis nnoli ph. Government remains focused on critical economic and social sectors.
Most legislatures that are active in the budget process have strong and active committee systems and a. Arguments have raged on over the financial illiteracy hindering most nigerians from full participation in government and, clearly understanding governance and government activities across all spheres of life. The importance, effect, causes, relationship, comparison, history, role, solutions are discussed. The year entails several events that define the progress of the country and its future. Even in nigeria, no one has been able to say exactly what budgetpadding represents.
Section 5 evaluates the institutional shortcomings of the federal budget process and concludes by recommending. Aug 31, 2016 like in other countries of the world, the budget process in nigeria has four stages namely formulation, approval, implementation and control. Authors contributions this work was carried out in collaboration between both authors. Igr to recurrent expenditure ratio across the states, 20012005. Budget implementation and economic development in delta. Apparently, this could be one of those terms that cannot be defined but can only be described.
The national assembly and the budget process in nigerias fourth. This process revolves round the executive and the legislative arm in the democratic system. Establishment of the nigerian electricity regulatory commission nerc in 2005. The national assembly and the budget process in nigerias.
The year 2011 is a distinguishing year for nigeria. Our present procedure in regard to appropriation bill is a far cry from our experience under all the military regimes we were subjected to from january 1966 to september 1979 and january 1984 to may 1999. The future of nigeria and democracy in nigeria depends on the commitment, dedication and personal sacrifice of all citizens, especially those appointed to protect her integrity. The challenges of budget implementation in nigeria projectclue. The fourth phase encompasses the entire budget process.
To benchmark the current budget governance process in nigeria, according to. In nigeria especially in the area of production, we have experienced a situation where various policies, effect and measures have been used all towards making sure that the defects and economic failures of the past years as a result of lack of proper planning and control are corrected, further plans. However, implementation of the budget is crucial to its success. We will change our habits and we will change nigeria. Budget implementation that follows due process in line with the provisions of public procurements act 2007. Budgeting process, budget padding, appropriation, the legislature, constituency.
Recurrent expenditure proposed for 2012 budget will consume a whopping 72% of the expenditure. The nigerian budget process central bank of nigeria. Implications for institutional reforms for acheiving timeliness. The budgetary process in nigeria since 1999, at all levels based on the socalled envelop system, has always been a work of guesstimation and at best based on pseudoestimates. Next, the most costeffective variants must be selected.
The effect of the manipulation of the staff recruitment and selection process in nigerias public service is a failed and incapacitated civil service that is unable or constrained from. Federal republic of nigeria fiscal responsibility act, 2007. See the problems and prospects of budget implementation in nigeria. Budget allocations by functional classification, 20052009 34. The importance, effect, causes, relationship, comparison, history. Investigation of open budget data in nigeria open data research. Role of the legislature chapter 1 in the budget process. Home analyses the role of the executive and legislature in the budgeting process in nigeria the formal unveiling of orderpaper.
Federal ministry of budget and national planning nigeria. The nigerian budget process 12 to determine if it is deficitsurplus budget. Nigerias neighbours benin, togo, ghana and cameroon were all ranked higher than nigeria that year. Unfortunately, the budgetary process in nigeria is said to be fraught with. Pdf budget processes and participatory budgeting in nigeria.