AN ASSESSMENT OF THE CHALLENGES OF PENSION SYSTEMS IN NIGERIA
Abstract
This paper assesses the pension scheme in Nigeria and its challenges since the inception of this country. The purpose is to find solution to the lingering systemic pension challenges in Nigeria. The study used primary data to explain the problems associated with contributory pension scheme. 60 respondents were randomly selected from existing and will be pensioners. Simple percentages were used to summarize their responses, thus, descriptive analyses was employed the analyze data generated. The research found out that the new contributory pension scheme which was ushered in by the Reform Act 2004, has helped in reducing the problem associated with the define benefit scheme. The study has shown that effective and sound investment and management of pension fund has a tremendous impact the economy as a whole. There will be huge investment of fund in the capital and money markets, creation of employment opportunities as well increased tax revenue to the government. Having reviewed the Contributory Pension Scheme (CPS), the research hereby recommend thus: There should be more emphasis on the management of pension assets in the capital market as well as government bond, real estate, investment trust to boost Gross Domestic Product (GDP) of the country (Nigeria); Risk assessment should be improved upon in the area of pre-investment risk appraisal. This will help to guide against economic and political risks that are prevalent in an emerging economy of ours; PenCom should ensure effective monitoring, supervision and enforcement of the provision of the PRA 2004, which are the inevitable ingredients in the Contributory Pension Scheme towards Gross Domestic Product (GDP).
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