Abstract
The effectiveness of budgeting has a link with the level of environmental volatility. It means that, how effective budgeting would be in controlling the activities of any organisation depends largely on the environmental volatility under which such budget is operated. Empirical evidence on the effect of environmental factors on budgeting and budget effectiveness in Nigeria, an emerging economy has been scanty. This gap in the literature is the focus of this study. The primary source of data was used and data were collected through the use of questionnaire. Hypotheses were formulated and tested using inferential statistics. Findings did not provide strong evidence on the effectiveness of budgeting as a control measure. This is not consistent with evidences from the developed world. The findings also reveal those factors affecting the effectiveness of budgeting in Nigeria.
Highlights
Nigeria is a country endowed with all kinds of resources; human, material, capital and otherwise
How effective budgeting would be in controlling the activities of any organisation depends largely on the environmental volatility under which such budget is operated
This study provides empirical evidence on budgeting as a management control with the private sector in focus against most researches on this area conducted on the public sector
Summary
Nigeria is a country endowed with all kinds of resources; human, material, capital and otherwise. In spite of her huge potentials, the country is still either believed to be a third world country or a developing one. This may be as a result of the level of corruption, bad economy, low production, high importation of good and services, inadequate infrastructural facilities; to mention but a few. Inconsistency in government policy is another major issue characterising the business environment in Nigeria. It may be said that for businesses to thrive well in the Nigerian environment, these problems would have to be surmounted
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
