JFRM  Vol.8 No.3 , September 2019
The Nigerian Contributory Pension Market: A Review of Compliance Status across the Federation
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.
Cite this paper: Odo, C. , Orga, C. and Ozoemenam, K. (2019) The Nigerian Contributory Pension Market: A Review of Compliance Status across the Federation. Journal of Financial Risk Management, 8, 163-176. doi: 10.4236/jfrm.2019.83011.

[1]   Akin-Fadeyi, T., & Prochazka, J. (2016). Financial Inclusion in Nigeria: Trends, Achievements, Challenges and Prospects. Bullion, (1-40), 89-100.

[2]   Bello, S. (2018). Minimum Wage: N30000 Monthly Salary Not Feasible-Presidency. Daily Sun, (15)4045 2.

[3]   Binuomoyo, O. K. (2009). The Nigerian Pension System: Reform and Expectations. Pension: An International Journal, 15, 3-10.

[4]   D’Arcy, S. P., Dulebohn, J. H., & Oh, P. (1999). Optimal Funding of State Employee Pension Systems. The Journal of Risk and Insurance, 66, 345-380.

[5]   Davis, E. P. (1993). The Structure, Regulation, and Performance of Pension Funds in Nine Industrial Countries. Policy Research Working Paper (1229).

[6]   Diamond, P. (1996). Government Provision and Regulation of economic Support in Old Age. In M. Bruro, & B. Pleskovic (Eds.), Annual World bank Conference on Development Economics (pp. 110-116). Washington DC: The World Bank.

[7]   Egbuna, C. (2018). As World Bank Applauds Anambra State. Daily Sun, (15)4045, 17.

[8]   Ego-Alowes, J. (2018). NLC Labour Lords. RonuDaily Sun, (15)4064,47.

[9]   FGN (2005). Contributory Pension Scheme. A Publication of the Federal Ministry of Information National Orientation.

[10]   Gadzama, Z. (2017). FSS 2020: Pension Sector. Bullion, (41)3, 36-38.

[11]   Gbolangute, B. (2018). Ondo Pensioners: Our Many Woes. Daily Sun, (15) 4049, 23-24.

[12]   Inabo, O. A. (2011). Curbing Financial Wastage in the Public Sector. Sun, 6(2024), 19.

[13]   Nweke, M. (2017). N1bn Capitalisation No Longer Adequate for Pension Operators. Daily Sun, (13)3631,23.

[14]   Okafor, F. O. (2000). Institutional Aspects of Pension Administration: The Nigerian Experience. Nigerian Journal of Banking and Finance, No. 3, 25-32.

[15]   Oloja, M. (2011). Heads May Roll over Alleged Pension Fraud. The Guardian, 28(11610).

[16]   Onuorah, M. (2002). Endless Travails of Our Heroes Past. Guardian.

[17]   Ovuorie, J. M. (1998). Wanted: A Pension Service Commission (p. 7). Business Time.

[18]   Pencom (2016). First Quarterly Report.

[19]   Pencom (2017). Fourth Quarterly Report.

[20]   Pencom (2018). First Quarterly Report.

[21]   The National Assembly (2004). The Pension Reformed Act 2004.

[22]   The News (2002). The News Magazine, June, 17.

[23]   The World Bank (1994). Averting the Income Crisis for the Old. World Bank Policy Research Bulletin, 5, 1-20.

[24]   Uche, C. U. (1998). The Adoption of Money-Laundering Law in Nigeria. Journal of Money Laundering Control, 3, 220-227.

[25]   Umar, G., & Emmanuel, T. (2012). Contributory Pension System as a Tool for Economic Development in Nigeria. International Journal of Business and Bebavioural Sciences, 2, 6-8.

[26]   Uwujaren, W. (2004). The Looting of Military Pension. Tell, No. 30, 18-23.

[27]   Uzoh, B. C., & Anekwe, S. C. (2018). The Contributory Pension Scheme and the Fate of Retired and Retiring Nigerian Workers. International Journal of Academic Research in Business and Social Sciences, 3, 527-541.

[28]   Uzoma, P. A. (1993). Pension Schemes in Nigeria. Lagos: Gentle Press Ltd. and Kubay Associates Ltd.