Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between performance-based budgeting and public trust in government has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of the Nigerian Oil and Gas Sector where operating conditions differ markedly from more developed markets.

Within the context of the Nigerian Oil and Gas Sector, 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 performance-based budgeting on public trust in government, making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

Despite a growing body of literature on performance-based budgeting, there remains limited consensus on the precise nature of its relationship with public trust in government, particularly within the Nigerian Oil and Gas Sector. Many organizations continue to make decisions about performance-based budgeting without a clear, evidence-based understanding of how those decisions ultimately affect public trust in government. This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Performance-Based Budgeting on public trust in government in the Nigerian Oil and Gas Sector.
2. To assess the extent to which performance-based budgeting influences public trust in government within the study area.
3. To identify the challenges associated with performance-based budgeting in relation to public trust in government.
4. To recommend strategies for optimizing performance-based budgeting in order to improve public trust in government.

1.4 Research Questions

1. What is the effect of performance-based budgeting on public trust in government in the Nigerian Oil and Gas Sector?
2. To what extent does performance-based budgeting influence public trust in government within the study area?
3. What challenges are associated with performance-based budgeting in relation to public trust in government?
4. What strategies can be adopted to optimize performance-based budgeting in order to improve public trust in government?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around public trust in government. For managers and practitioners within the Nigerian Oil and Gas Sector, the study provides practical insight into how performance-based budgeting can be better managed. Finally, it contributes to the academic literature on public administration by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

The study is limited to an examination of Performance-Based Budgeting and its relationship with public trust in government within the context of the Nigerian Oil and Gas Sector. It reflects a MSc-level scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.