Effect of Pension Fund Administration on Capital Market Development in Nigeria

Abstract

This study assesses the effect of pension scheme fund administration on capital market development in Nigeria. Investments are required for the growth and the sustainable development of any economy and the capital market provides such a platform for the mobilization and allocation of savings critical to growth and development. The pension fund is a long-term retirement benefit for employee thus, the objective of the study is to examine the connection between pension fund and capital market development in Nigeria using the ex-post facto research design. Data used for the study was sourced from the CBN annual statistical bulletin. The Ordinary Least Square Regression (OLS) was used in the analysis of data. Findings from the study revealed that pension scheme fund significantly impact on the market capitalization (MCAP), all share index (ASI), volume of transaction (VOT). The study recommends the need for the use of Information Communication Technology (e-channel payments) for expansion of collection and disbursement methods.