PPBS in Nigeria: Its origin,progress and problems

One of the normative models of budgeting prescribed for the Third World countries is PPBS. This paper examines the attempts made by the Nigerian Federal Government to make PPBS part of its budgeting system. Although the idea of PPBS was first highlighted by the 1974 Udoji Public Service Review Commission, it was only in 1980 that a serious attempt was made to start experimenting with PPBS. It was hoped that, by the end of the 1983, PPBS would be fully utilized in all the government ministries and departments. It was the intention of the government to use PPBS to achieve a ‘coordinated and comprehensive’ budgetary system that relates cost with output in order to achieve ‘quick results’ in the implementation of its programme. However, as at the end of 1986, apart from documentary reform (that is improvement in classification of expenditure categories in the budget documents), not much was achieved in Nigeria. In addition to the general difficulties encountered with PPBS in other places where it was tried, the effectiveness of PPBS was circumscribed by a variety of institutional, economic and political factors. The paper concludes by asking whether the exercise was not a retreat from the reality facing the country.