Chapter One — 1.1 Background to the Study

In recent years, Performance-Based Budgeting has emerged as a critical factor shaping public trust in government across organizations operating in and around Selected Microfinance Banks in Nigeria. As institutions grapple with the pressures of globalization, regulatory reform, and shifting stakeholder expectations, understanding how performance-based budgeting relates to public trust in government has become an important area of both scholarly and practical concern.

Within the context of Selected Microfinance Banks in Nigeria, 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

While performance-based budgeting is widely discussed in policy and industry circles, empirical evidence on its actual effect on public trust in government within Selected Microfinance Banks in Nigeria 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 performance-based budgeting are helping or hindering public trust in government — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Performance-Based Budgeting on public trust in government in Selected Microfinance Banks in Nigeria.
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 Selected Microfinance Banks in Nigeria?
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

Beyond its academic contribution to the field of public administration, this study has practical value for management teams within Selected Microfinance Banks in Nigeria seeking to understand how performance-based budgeting translates into measurable outcomes around public trust in government. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

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 Selected Microfinance Banks in Nigeria. It reflects a PhD-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.