Pension Fund Administration and Economic Wellbeing of Nigerian Populace: A Comparative Evaluation of 2004 and 2014 Pensions Reform Acts Periods

Abstract

This study comparatively evaluated the impact of pension fund administration on the economic wellbeing of Nigerian populace under the 2004 and 2014 Pension Reform Acts regimes. Pension fund administration was measured with pension fund contributions from public and private sectors and real gross domestic product per capita was used as proxy for economic wellbeing. Data were sourced from the National Pension Commission Annual reports and Central Bank of Nigeria Statistical Bulletin for periods covering 2008 – 2013 (2004 PRA regime) and 2014 – 2019 (2014 PRA regime). Data were analysed using Ordinary Least Square Regressions and Chow statistics, after validating the data with Normality test. Results revealed that, on individual basis, pension fund contribution by public and private sectors has no significant impact on the economic wellbeing of Nigerian populace under the 2004 and 2014 Pension Reform Acts (PRAs). However on jointly basis, the total pension fund (public & private sectors) contributions significantly impacted on the economic wellbeing of the people during the 2004 PRA regime but did not show any statistical evidence of significant impact during the 2014 PRA regime; the total Pension fund contributions since the 2004 PRA to date exerted significant impact on economic wellbeing of Nigerians; and the relegation of 2004 PRA for 2014 PRA has warranted a structural change in pension fund administration in Nigeria. Therefore, pension fund contributions under 2004 PRA regime supported economic wellbeing better than the 2014 PRA periods. The study thus recommended (among others) that the national pension commission should carry out more awareness campaign on the operations of pensions schemes in Nigeria.