Impact of Contributory Pension Scheme on the Growth of Nigerian Economy

Abstract

The study examined the impact of contributory pension scheme on the growth of Nigeria economy. The primary aim of this study is to determine how Retirement Savings Account contributes to Nigeria economic growth. The study runs from 2006 through 2018. Data for this study were obtained from the 2018 edition of the Central Bank of Nigeria (CBN) statistical bulletin, National Pension Commission (PenCom) Annual Reports and National Bureau of Statistics (NBS). Descriptive research design was adopted for the purpose of this study. The tools of data analysis is ordinary least square regression methods which were carried out with the aid of E-view statistical packages. Findings from the study revealed that Retirement savings Account (RSA) which was used as a proxy for contributory pension scheme has a positive and significant effect on the economic growth of Nigeria. The study recommends that employees should be made to understand that even within the new pension scheme they can still access up to 25 per cent of their retirement savings as a single bulk payment to enable them start a new business or deal with the issues of transition from active employment to retirement.