Budgetary Control and the Performance of Publicly Listed Commercial Banks in Nigeria
Abstract
The study investigated how budgetary control can improve the performance of commercial banks in Nigeria. The goal was to identify problems associated with budgetary control and ways to improve commercial banks’ performance via effective budgetary control. Survey research design was used and a sample of 139 was from the study population. 139 copies of structured questionnaire were administered to respondents and data obtained were analyzed using descriptive (mean, frequency counts, simple percentages and standard deviation), and inferential (regression) statistical techniques. The study found several challenges linked with budgetary control to include poor management supports and commitments, inadequate budgetary control by unqualified staff, irregular budgetary review and analysis, and unclear budgetary guidelines/procedures. Also, the study indicated that with an effective budgetary control, the performance of publicly listed commercial banks can be improved. On the basis of the findings, the study recommends that recruitment and participation of qualified staff in budgeting decisions as well as regular budgetary reviews and analysis in order to facilitate timely identification of grey areas for improvement needed to drive performance of publicly listed commercial banks. Also, clear budgetary guidelines/procedures should be established and communicated to minimize errors and in ensuring robust budgetary control frameworks.
Keywords
Budgetary control; Commercial banks; Financial performance; Central Bank
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