Chapter One — 1.1 Background to the Study

Zero-Based Budgeting has increasingly attracted the attention of researchers, regulators, and practitioners concerned with voluntary tax compliance. This growing interest reflects the recognition that zero-based budgeting does not operate in isolation, but interacts with a wider set of institutional and market conditions found within Nigeria and Selected ECOWAS Member States.

Within the context of Nigeria and Selected ECOWAS Member States, this relationship carries particular significance. Organizations in this setting operate under a distinct combination of economic, regulatory, and market conditions that may amplify or dampen the effect of zero-based budgeting on voluntary tax compliance, making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

While zero-based budgeting is widely discussed in policy and industry circles, empirical evidence on its actual effect on voluntary tax compliance within Nigeria and Selected ECOWAS Member States remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to zero-based budgeting are helping or hindering voluntary tax compliance — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Zero-Based Budgeting on voluntary tax compliance in Nigeria and Selected ECOWAS Member States.
2. To assess the extent to which zero-based budgeting influences voluntary tax compliance within the study area.
3. To identify the challenges associated with zero-based budgeting in relation to voluntary tax compliance.
4. To recommend strategies for optimizing zero-based budgeting in order to improve voluntary tax compliance.

1.4 Research Questions

1. What is the effect of zero-based budgeting on voluntary tax compliance in Nigeria and Selected ECOWAS Member States?
2. To what extent does zero-based budgeting influence voluntary tax compliance within the study area?
3. What challenges are associated with zero-based budgeting in relation to voluntary tax compliance?
4. What strategies can be adopted to optimize zero-based budgeting in order to improve voluntary tax compliance?

1.5 Significance of the Study

Beyond its academic contribution to the field of accounting, this study has practical value for management teams within Nigeria and Selected ECOWAS Member States seeking to understand how zero-based budgeting translates into measurable outcomes around voluntary tax compliance. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

In terms of scope, this study confines itself to Nigeria and Selected ECOWAS Member States, focusing specifically on how zero-based budgeting relates to voluntary tax compliance within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.