Budgeting is an Indispensable Tool for Planning and Control in the Oil Industry ( A Case Study of Addex Petroleum )

CHAPTER ONE

1.1       INTRODUCTION TO THE STUDY

          The long-term success of any business enterprise depend largely on its management managing. In fact, coordinating and controlling all efforts in an enterprises in order to achieve it stated objectives. Management functions of coordinating and controlling an enterprises facilitated by various procedures are of which is planning.

          Omolehinwa (1991) stated that a budget can be view as the plan of dominant individuals in an organization expressed in monetary term, and subject to the constrains imposed by available resources may be utilized to achieve whatever the dominant individuals agrees to be the priorities of the organization.

          For the purpose of the study, we shall defined budgeting as the formal approach of stating and communicating a firm’s control responsibilities of management in such a way as to maximize the benefit derivable from the use of it is scarce resources.

1.2          PURPOSE OF THE STUDY

          The purpose of this study is to examine the budgetary system of Addax development Nigeria limited appraise the procedure and technique adopted in budget preparation and to determined the level of compliance of the company’s budget of the production sharing control (PSC) with the Nigerian Government.

SPECIFICALLY

1.    This study intends to  establish to use of budgeting as a tool for planning and control in addex.

2.    To know the existence or otherwise of adequate budgetary control set up by management to identify the techniques and practices adopted in the budgeting process of Addex

3.    To identify the techniques and practices adopted in the budgeting process of Addex.

4.    To know the existence or otherwise of adequate control of Addex budget by NNPC.

5.     To identify obstacles encountered in the planning, budget preparation and control function in Addex.