EFFECT OF BUDGET ON THE PERFORMANCE OF PUBLIC SECTION ORGANIZATION IN NIGERIA (A STUDY OF FEDERAL ROAD MAINTENANCE) AGENCY-FERMA

This study examines the Effect of Budget on the Performance of Public Sector Organizations in Nigeria, with specific focus on the Federal Road Maintenance Agency (FERMA). The research was necessitated by the persistent) challenges of inadequate funding, poor budget implementation and inefficiencies in public infrastructure maintenance despite annual budget allocations. The study employed a descriptive research design, collecting primary data through structured questionnaires administered to FERMA staff, and secondary data from budget reports, performance records, and policy documents. The analysis was conducted using descriptive and inferential statistics to establish the relationship between budgetary allocation, implementation, and organizational performance. Findings reveal that while budget preparation in FERMA follows established government procedures, delays in budget approval, partial releases, and misalignment between budgeted and actual expenditure significantly hinder operational efficiency. The study further shows that effective budget implementation positively impacts project completion rate, quality of road maintenance, and overall service delivery. However, frequent budget revisions, bureaucratic bottlenecks, and political interference weaken the agency's capacity to meet its statutory mandates. The research concludes that the performance of public sector organizations like FERMA is directly linked to the adequacy, timeliness, and proper utilization of budgetary resources. It recommends strengthening budget monitoring mechanisms, ensuring timely fund releases, and adopting performance-based budgeting to enhance accountability and efficiency in public infrastructure management.