Zero-based budgeting: Pathway to sustainable budget implementation in Nigeria

This paper investigates the application of Zero-Based Budgeting (ZBB) system to budget \nimplementation by the Federal Government of Nigeria by ascertaining among others, the relationship \nbetween ZBB approach and budget performance indices in Nigeria. To achieve the above, primary data \nwere obtained through questionnaires that were specifically designed for this study. The data obtained \nwere analysed with the SPSS version 21. The statistical tools employed were Analysis of Variance \n(ANOVA) and Pearson Correlation Coefficiant (PCC). The Cronbach’s Alpha reliability test was used to \ntest the internal consistency/reliability of the instrument used for the study. On the basis of the analysis, \nwe found that there is significant difference in the effectiveness of ZBB in terms of budget \nimplementation compared to the Traditional Budgeting System (TBS). It was also found that the \napplication of ZBB tend to be performance-driven and is able to detect the redundant \nprogrammes/projects and staff, thereby recommending either realignment, discharge, transfer or \nredeployment of projects or resources. The study therefore, recommends among others that ZBB \nshould be encouraged as a good means of budget implementation and also close monitoring of budget \nexecution should be enshrined in work ethics at every stage of budget preparation and implementation \nin the country. This is believed would go a long way to strengthen measures aimed at mitigating poor \nbudget implementation in the country.