Impact of Pension Fund Investment on Capital Market Performance in Nigeria

Abstract

The study investigates impact of pension fund investment on capital market performance in Nigeria. The study adopted Ordinary Least Square (OLS) in order to compare the relationship among the variables of interest. Variables of interest comprise of Market Capitalization, All Share Index and Debt Capitalization while the study period is from 2008 - 2018. To achieve these objectives, relevant secondary data were sourced from different sources. The result reveals that Pension Fund Net Asset value has a positive and significant effect on Market Capitalisation and Debt Capitalization but negative and insignificant effect on the All Share Index of the economy. It is recommended that PENCOM should ensure effective monitoring, supervision and enforcement of the provision of the PRA2004, which are the inevitable ingredients in the Contributory Pension Scheme towards Gross Domestic Product (GDP). Also, more emphasis should be placed on the management of pension assets in the capital market as well as government bond, real estate, investment trust to boost Gross Domestic Product (GDP) of the country (Nigeria).