The Nigerian Contributory Pension Market: A Review of Compliance Status across the Federation

Abstract

The paper reviews the compliance status of the Federal, State and private sector pension systems in Nigeria after the reform in 2004 that changed the funding strategy from pay-as-you-go to the contributory modality. It first spotlighted the grim factors of the old pension system that made reform inevitable. The paper in the main argues that compliance with the provisions of the law remains the only guarantee of workers' retirement future. It further points out the specific role labour leadership must play in this regard. The paper disclosed that the observed failure to implement the provisions of the law across the tiers, especially the federal and state government segments, arose in part due to a conspiracy of factors, including, recession, legislative loopholes, supervisory negligence, and absence of sustained engagement of labour leadership with employers across the tiers. The paper therefore concludes by recommending a more focused engagement strategy by labour leadership and a stricter penalty that makes default in making contributions less attractive.

The Effects of Pensions Administration on Earnings Management of Listed Pension Companies in Nigeria

“…Contribution density is also an important factor that has affected pension benefits in countries with large informal sectors. Individuals with low contribution density are likely to face low accumulated assets at retirement age, and thus are likely to have low retirement incomes (Odo, et al, (2019). For any given rate of turnover between covered jobs and other uses of time, average density falls when self-employment and informal employment expand and when activity outside the labour force (mainly home production) rises.…”

Contributory Pension Scheme and Welfare of Retirees: A case of Tertiary Institutions of Education in Southwestern Nigeria

“…It is however doubtful if reports and literature are anything to go by if the CPS is not already guilty of the shortcomings of the previous scheme, which the CPS in the first place was enacted to address. For example, Uzoh & Anekwe (2018) and Odo, et al (2019) observe that key issues of concern about the CPS as highlighted by the National Pension Commission (PENCOM) quarterly report include unremitted and un-credited pension contributions as well as delayed payment of retirement benefits. It is therefore of concern, the likely status of the welfare of the retirees in the face of the identified shortcomings of the CPS.…”