Contribution Pension Regime in Nigeria: Obstacles and way forward

Abstract

This study examined the challenges of  contributory pension regime  in Nigeria as well as the vision achievement rate of PenCom. The study reviewed  literature and published annual reports of PenCom. The study revealed that reluctance and disbelief by workers to register with Pension Funds Administrator, compliance, benefit inadequacy, low capital formation, non-inclusion of the informal sector, overlapping regulations, and coverage are persistent challenges confronting recent pension reforms in Nigeria. In addition, it was found that the vision achievement index by PenCom is below average after 14 years of operation. The study recommends a synergy between Pension Fund Administrators, Pension Fund Custodians and PenCom in order to combat some challenges of noncompliance. In addition, these stakeholders should adopt best processes and technologies that would influence workers positively and change the unwillingness and disbelief by workers to register with Pension Funds Administration (PFAs).