A Transparent and Traceable Budget Process in Nigeria Using Blockchain Technology

Abstract

The Nigerian economy is beset by a slew of imbalances in the formulation and implementation of economic policies. Most problems in Nigeria are caused by imbalances in budget formulation and implementation. Budget padding and budget mismanagement are the primary modes through which corruption is carried out in Nigeria. In the 2019 Open Budget Index (OBI), Nigeria ranked 97th out of 117 countries, with a transparency score of 21 out of 100. This study employed a qualitative research method, using three approaches: a literature review, secondary research and case studies, to generate research evidence. Qualitative data collection and analysis were undertaken using a literature study to discover Blockchain Technology's benefits and examine the underlying challenges and causes of corruption in the budget process. The results of this study identify government non-trnsparency and lack of traceability as the primary causes of long-term budget failures. A consensus-driven collaborative National budget framework based on blockchain is recommended to establish communication between government departments. Blockchain technology can help combat budgetrelated corruption and the technology can be used as a budget-tracking system. Nigerians will be able to track budgets in this manner, which will aid in the elimination of corruption and embezzlement of funds because transaction data such as transaction amount, time, account numbers, and receivers will all be made public. The blockchain promises tamper-proof records that corrupt bureaucrats will be unable to alter. When corruption represents a breach of trust, a technology that builds trust becomes an appealing solution