Pension Reform and Economic Development in Nigeria

Over the years, Nigeria government has undertaken pension reforms with the aim of engendering economic development in the nation. Thus, the study examined the nexus between pension reform and economic development of Nigeria from 2004 to 2022. Specifically, the effects of pension fund investments, private sector pension fund contributions, public sector pension fund contributions and number of retirement savings account on human development index, per capita income and misery index in Nigeria. Error correction mechanism (ECM) technique and paired t-test were employed in analyzing the data. Findings revealed that accumulated and current pension fund investments had negative and insignificant effects on per capita income and HDI while its effect on misery index was mixed as current pension fund investments had negative and significant effect and accumulated pension funds' investments exerted positive and insignificant effect on misery index in Nigeria, respectively. Private sector pension fund contributions positively and significantly influenced GDP per capita in Nigeria while it had negative and significant effect on misery index. Public sector fund contributions had positive and significant effect on HDI whereas it exhibited negative and significant effect on misery index. Furthermore, number of retirement savings account positively and insignificantly affected GDP per capita while it had positive and significant effect on HDI even as it exhibited negative and significant effect on misery index in Nigeria. Based on the outcomes of the study, it is recommended that pension fund administrators in Nigeria re-route their investment so as to enhance per capita income and HDI in Nigeria. This can be achieved through investment in corporate and government securities.