Budgetary System and Management Performance in Selected Manufacturing Firms in Ogun State, Nigeria

Abstract The manufacturing sector is a critical driver of industrialisation and economic development in Nigeria. However, the sector’s contribution to value addition remains suboptimal, largely attributed to weaknesses in management performance. This study examined the effect of the budgetary system on the management performance of selected manufacturing firms in Ogun State, Nigeria. A cross-sectional survey design was adopted. Primary data were collected from 293 respondents using a structured questionnaire and analysed with SPSS. The hypotheses were tested using descriptive statistics, one-way ANOVA, and regression analysis. The findings revealed that the budgetary system has a positive and statistically significant effect on management performance of manufacturing firms in Ogun State, Nigeria (R = 0.724, R² = 0.524, p < 0.05). Specifically, effective application of the budgetary system enhances employee motivation, supports efficient management decision-making, facilitates adequate program implementation, and contributes to the attainment of desired profit levels. Conceptually, the study extends the existing framework on budgetary systems and firm performance. Empirically, it provides evidence on the significant role of budgeting in strengthening management outcomes within the Nigerian manufacturing context. Based on these findings, the study recommends that manufacturing firms should institutionalise participatory budgeting, strengthen budgetary control mechanisms, and align budget implementation with strategic objectives to improve overall management performance.                                                         Keywords: Budgetary System, Management Performance, Manufacturing Sector, Value Addition,         Ogun State, Nigeria,