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Nigeria Journal of Management Sciences (NJMS), Benue State University

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Stakeholders' Perception On Resolving A Deterministic Budget Benchmark In Nigeria: A Case For Tax Based Budgeting

1. U.I. MAFIANA , Phd, CNA 2. E. JEROH , Phd , ACA: Department of Accounting and Finance, Faculty of Social Sciences, Delta State University, Abraka


This paper examines stakeholders' perception on the resolve for a deterministic budget benchmark in Nigeria by proposing a tax based budgeting system for Nigeria instead of the present commodity (or crude oil) based system. In the course of writing this paper, information was obtained from journals, textbooks, periodicals and newspapers. Responses were also obtained from 314 participants in an opinion poll that was specifically conducted. Hypothesis was formulated and tested at 5% level of significance using the F-test, via Stata 13.0 regression software. Result showed that stakeholders strongly believed that switching from crude oil price benchmark to tax based benchmark would provide a more deterministic budget benchmark in Nigeria. It was also found that the present system of budgeting has not motivated states to be inward looking and creative in generating revenue internally. Instead, states relied mainly on the statutory allocation from the central government. It is therefore recommended that budgeting should be tax-based rather than oil or commodity sales based. Also, the need for tax reform that will revamp tax justice and administration in Nigeria through the plugging of existing loopholes is thus justified.

Key words: Tax Based Budgeting; Crude Oil Price; Budgeting System; Statutory Allocation.

To get access to the full text of this article: Faculty of Management Sciences, Benue State University, Makurdi, Nigeria.

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