Page 1 of 26
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 8
August 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 372
Impact of Budget Formulation, Execution, and Implementation on
Federal Tertiary Institutions: The Case of North Central Nigeria
Nyikyaa Miriam Nguavese1 Rufus Ishola Akintoye Ph.D2, and Adegbie F.F Ph.D3
1Federal Polytechnic Nasarawa – Nigeria
1E-mail: nyikyaamiriam@yahoo.com
2&3Babcock University,Department of Accounting Ogun State – Nigeria
2E-mail:irakintoye@yahoo.com ;
3E-mail: adegbief@babcock.edu.ng
ABSTRACT
The support given to education by the
Nigerian governments (both past and
present) seems relatively low. All the
resources required for education production
process seem to be in short supply. Lecture
halls, laboratories, students’ hostels, library
space, books and journals and office spaces
are all seriously inadequate. The study
evaluated the impact of Government
budgeting, execution and implementation on
Nigerian tertiary education. This study
measured the impact of budget figure, cash
backing and project implementation on
development in tertiary institutions in North
central zone, Nigeria. The study adopted an ex- post facto and descriptive research designs. The
population of the study comprised Federal
Universities, Polytechnics and Colleges of
Education in the North Central region of
Nigeria. Purposive/judgmental sample technique
was used to select three higher institutions and
the Federal ministries of education and finance.
65copies of self-design questionnaire were
retrieved out of 84 distributed. The secondary
data were Budget Figure, project
implementation, naira value of new classroom
and laboratories, salaries of lecturers, cash
backing and research grant obtained from the
federal ministry of education between the
periods of 2010 to 2014.The findings revealed
that Budget figure, cash backing and project
implementation have a positive significant
impact on value of new classrooms
(P=0.000<0.05, P=0.001<0.05, P=0.036<0.05)
and an R
2
of 0.99. The findings also revealed
that Budget figure, cash backing and project
implementation have a positive significant
impact on value of laboratory equipment
(P=0.013<0.05, P=0.002<0.05, P=0.015<0.05)
and an R2
of 0.098. Also Budget figure, cash
backing and project implementation have a
positive significant impact on Research Grant
(P=0.020<0.05, P=0.002<0.002<0.05,
P=0.016<0.05) and an R2
of 0.98. It also
revealed that Budget figure, cash backing and
project implementation have a positive
significant impact on the salaries of lecturers on
higher degree R2
(P=-.018<0.05,
P=0.013<0.05, P=0.001<0.05) and an R2
of
0.98. The study concluded that there is a
significant positive impact of government
budgeting, formulation and expenditure on the
development of tertiary schools in the north
central zone of Nigeria. The key
recommendation among others is that
government must set up a budget monitoring
group comprising of all stakeholders to oversee
the formulation and expenditure of educational
budgetary funds.
Keywords: Budget, cash backing, tertiary
schools, project implementation, laboratory
equipment, research grants.
I Introduction
Education is widely accepted as a major
instrument for promoting socio-economic,
political and cultural development.
Education is a life-long process that has
interpretation in purpose, type and level. It is
a means of socializing people into the
Page 2 of 26
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 8
August 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 373
community, for upholding customs and
traditions as well as for the modification or
changing of same in conformity with
existing ideologies, ideological expansion or
reformation (Gore, 2010). Tertiary
education aims at generating national
development. It should not only be to
seek to develop the intellectual capacities
of individuals to understand and
appreciate their environment, but should
endeavour to equip recipients with
requisite physical and intellectual skills fit
for life in the society.
The underlying rationale for public funding
of education is to equip people with the
requite knowledge, skills and capacity to
enhance the quality of life, argument
productivity and capacity to gain knowledge
of new techniques for production, so as to be
able to participate evocatively in the
development process. Ukeje (2002)
explains that public sector funding of
education in Nigeria is anchored on the
notion that for society to continue in
perpetuity, the new generation must be
given the appropriate access to knowledge
that previous generation have accumulated.
Education sector supposed to be given a
high priority in budgetary allocations
because it produces the skilled manpower
for other sectors of the economy. The
role of education as an instrument for
promoting the socio-economic, political
and cultural development of any nation can
never be over-emphasized.
Education, as a key component of human
capital formation is recognized as very
important in increasing the productive
capacity of people. Education, especially at
the higher level, contributes directly to
economic growth by making individual
workers more productive and leading to
the creation of knowledge, ideas, and
technological innovation. An investment in
education is beneficial to the society, both at
micro and macro levels and affects the
system both directly and indirectly.
Education is basic to development and is
also regarded as an instrument through
which the society can be transformed.
As a salient factor in transition
programme, education equips human
resources with the needed knowledge,
skills and competencies, which would make
them functional, and contribute to the all- round development of the nation. It does not
only help to supply the essential human
capital which is a necessary condition for
sustainable economic growth but it is also a
key to poverty reduction and a major vehicle
Page 3 of 26
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 8
August 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 374
for promoting equity, fairness and social
justice (Okeke, 2007). The budget is
increasingly recognized as the key tool
for economic management (Scott, 2000). It
is nevertheless also recognized that a
country can have a sound budget and
financial system and still fail to achieve its
intended targets. This suggests that the rules
of the game by which the budget is
formulated and implemented are equally
important and that they do influence
outcomes. This recognition has led to a
series of budget reform systems that have
a broader focus on public expenditure
management.
II Statement of the Problem
The support given to education by the
Nigerian governments (both past and
present) seems relatively low. Even many
years after independence, it is stunning to
know that the adult illiteracy rate is still at
seventy four percent (74%) and the gross
enrollment rate is as low as 38% (William,
2010). It is worrisome to note that Nigerian
tertiary institutions are fast decaying. All the
resources required for education production
process seem to be in short supply. Lecture
halls, laboratories, students’ hostels, library
space, books and journals and office spaces
are all seriously inadequate. This study was
designed to measure the impact of budget
formulation and execution in figure, cash
backing and project implementation and the
development in federal tertiary institutions.
III Objectives of the study
The main objective of this study was to
evaluate the impact of Government
budgeting, execution and implementation on
Nigerian tertiary education. The specific
objectives are to:
1. examine the effects of budget figure,
cash backing and project
implementation on Naira value of new
classroom;
2. assess the effect of budget figure, cash
backing and project implementation on
Naira value of laboratory equipment;
3. determine the effects of budget figure,
cash backing and project
implementation on research grant and
4. evaluate the effects of budget figure,
cash backing and project
implementation on salaries of lecturers
supported by the government on Higher
Degrees.
IV Research Questions
The following are the research questions
which this study provided answer to:
