Contributory Pension Scheme and Human Development Index in Nigeria

Abstract

This study’s major goal was to find out how Nigeria’s contributory pension system affected the country’s economic growth. The National Pension Commission Annual Report and the Central Bank Statistics Bulletin were used to collect the data for this ex-postfacto study’s analysis. A model was developed based on empirical and theoretical reviews to accomplish this goal. The dependent variable in the model was the Human Development Index, and the independent variables were Private Sector Pension Funds, Public Sector Pension Funds, and Total Pension Funds. The Fully Modified Least Squares (FMOLS) Model was used in this study to examine the data. The results of this study showed that total pension funds, private sector pension funds, and public sector pension funds all had positive and significant effects on the human development index within the parameters of this study, with p-values of 0.0000, 0.0000, and 0.0031, respectively. The inference result led to the conclusion that Nigeria’s economic progress had been positively and significantly impacted by the contributory pension programme. Providing timely pension payments to beneficiaries in the public and private sectors will stimulate economic growth by introducing cash into the economy. The researcher concludes from the foregoing that government should ensure that pension payments are made on time, in accordance with the Pension Reform Act of 2014; if this is accomplished, economic development would be reached through an increase in the citizens’ standard of living.