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The Funded Pension Scheme and Economic Growth in Nigeria

Author

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  • FARAYIBI, Adesoji

Abstract

This study provided evidence on the effect of the operation of the funded pension scheme since its inception in 2004 on economic growth in Nigeria using error correction mechanism (ECM) and Ordinary Least Square (OLS) methodologies. Findings revealed that the pension fund contributions from both private and public sectors in Nigeria increased greatly and constituted a huge investment fund in the capital and money markets. This increased liquidity in the economy and created employment opportunities as well as improvement in the investment climate. The study concluded that with good risk and portfolio management by pension fund administrators and custodians, the contributory pension has the capacity to boost the Gross Domestic Product (GDP) in Nigeria and very convenient to retirees compared to the previous defined benefit scheme. The study however recommended the removal of delay payment, administrative bottlenecks and corruption in the management of the pension fund in order to boost economic growth in Nigeria.

Suggested Citation

  • FARAYIBI, Adesoji, 2016. "The Funded Pension Scheme and Economic Growth in Nigeria," MPRA Paper 73613, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:73613
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    File URL: https://mpra.ub.uni-muenchen.de/73613/1/MPRA_paper_73613.pdf
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    References listed on IDEAS

    as
    1. Sule Kehinde Oluwatoyin & Emerole Gideon Ahamuefula, 2011. "The Impact of Assets Size and Profitability on Funded Status of Employee Retirement Benefits by Quoted Firms in Nigeria," Information Management and Business Review, AMH International, vol. 2(3), pages 125-132.
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      More about this item

      Keywords

      Funded Pension Scheme; Economic growth; Portfolio management; ECM; Nigeria;
      All these keywords.

      JEL classification:

      • H0 - Public Economics - - General
      • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
      • H5 - Public Economics - - National Government Expenditures and Related Policies
      • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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