EFFECTS OF BUDGET PREPARATION AND PROCESS ON ACCOUNTABILITY: EVIDENCE FROM SELECTED PUBLIC SECTOR ENTITIES IN NIGERIA

Abstract

This study investigates the effect of budget preparation and processes on the accountability of public sector entities in Nigeria, with specific attention to federal ministries, departments, and agencies (MDAs). The study adopted a cross-sectional survey design targeting senior officials directly involved in budget processes across 29 federal ministries and 159 agencies. Using stratified random sampling, a total of 311 valid responses were obtained. The data was analyzed using Ordered Logistic Regression and Ordinary Least Squares (OLS) to assess the influence of budget preparation components on various dimensions of accountability in the MDAs. The findings indicate that Budget Preparation and Review (β = 0.228, t = 2.09, p = 0.037) and Budget Hearings and Defenses (β = 0.236, t = 2.32, p = 0.021) positively and significantly enhance accountability, whereas Budget Policy Formulation and Call Circulars (β = 0.008, t = 0.09, p = 0.931) and Budget Approval and Adoption (β = 0.006, t = 0.06, p = 0.951) have no significant effect. The study concludes that effective budget preparation, review, and defense significantly enhance accountability in Nigerian public sector entities, whereas policy formulation and formal approval have minimal impact.The study recommends that the Budget Office of the Federation and State Ministries of Budget and Planning, should promote early-stage budget planning through realistic revenue projections and clear policy guidelines, while also fostering stakeholder inclusiveness during policy formulation to enhance transparency and ownership.