Budgeting Process and its Relevance to the Educational System in Nigeria

Abstract

Financial resources available to the education sector are increasingly limited and competitive, while the demand for education geometrically rises, leading to an apparent mismatch in the system. Therefore, to ensure prudent management of the scarce educational resources, financial management tools like budgeting is inevitable. The paper reviewed budgeting process and its relevance to the educational system in Nigeria. It explained that in educational institutions, the realization of desired educational goals and objectives depended largely on the efficient planning and management of school funds by the school administrators. It was corroborated by the National Policy on Education (2016) that “the success of any education system is hinged on proper planning, efficient administration and adequate financing” The paper further highlighted the budgeting process required of the heads of educational institutions to adopt, as stipulated in the Financial Guidelines and Regulations (FGR), for efficient and prudent financial management of educational resources and for the attainment of educational goals. The paper concluded that the actualization of educational objectives depended largely on efficient planning and management of school funds which could be significantly achieved through an efficient budgeting system. It suggested that budget preparation, defence and approval should be done at the appropriate time by the designated authorities, and that budgetary allocations to education should be released to the sector on time. The paper further suggested that budgeted allocation to education should be released adequately and not be ‘allocations on papers’.