CONTRIBUTORY PENSION SCHEME AND PERFORMANCE OF INSURANCE COMPANIES IN NIGERIA

ABSTRACT

This study reviewed the relationship between contributory pension scheme and performance of insurance companies in Nigeria over the period of 2004 – 2021. The study’s objective is to examine the relationship between the total amount of contributions to pension schemes by individuals or organizations and performance of insurance companies in Nigeria, to investigate the rate at which pension scheme percentage to GDP influence the performance of insurance companies in Nigeria, to analyse the extent to which growth rate of pension scheme contributions influence the performance of insurance companies in Nigeria, and to examine how interest rate on pension scheme contributions influence the performance of insurance companies in Nigeria. The Research design used in this study is the ex-post facto research design using multiple linear regression analysis approach with data sourced from annual reports of the Nigerian Penson Commission (PenCom). This study conducted regression analysis using the ordinary least squares (OLS) method for 18 years data sourced for the variables. The analysis of the data revealed that pension schemes contribution, pension scheme percentage to GDP, pension scheme contributions growth rate all have no significant effect on the performance of insurance companies in Nigeria. And that only interest rate on pension scheme (IR) has a significant effect on the performance of insurance companies in Nigeria. The study concluded that overall, contributory pension scheme has a positive but insignificant impact on the performance of the insurance industry in Nigeria for the period investigated and therefore recommends that policymakers should consider reviewing existing regulations related to pension scheme investments which could positively impact the insurance industry's performance