CONTRIBUTORY PENSION SCHEME MANAGEMENT AND ECONOMIC GROWTH IN NIGERIA

ABSTRACT

This study empirically investigates the impact of the contributory pension scheme management on economic growth in Nigeria for the period 2006 to 2022. Four (4) pension scheme related variables (independent variables) such as total assets of the contributory pension scheme (TACPS), total retirement savings accounts (TRSA), total pension contributions (TPC) and pension/gratuity component of the federal government (PGCFG) were regressed against gross domestic products (GDP) (dependent variable). The ordinary least square (OLS) technique was used for the analysis of data and the results revealed that, total assets of the contributory pension scheme (TACPS) and pension/gratuity component of the federal government (PGCFG) have significant inverse relationship with economic growth in the country. While total retirement savings accounts (TRSA) has significant positive relationship with economic growth, those of total pension contributions (TPC) failed the 5 percent level of significance indicating that this variable does not have any significant impact on the growth of the Nigerian economy. The study therefore recommends among others that, to enhance pension contributions (TPC) mobilization, efforts should be intensified to encourage employers/ employees in informal, governmental and non-governmental sectors to participate actively in the contributory pension scheme. Also, concerted effort should be made by management and other relevant regulatory authorities to remove unnecessary delay in payment, administrative bottlenecks and corruption in the management of pension fund in order to fast track rapid economic growth and development in Nigeria.