Global Advanced Research Journal of Management and Business Studies (ISSN: 2315-5086) September 2015 Vol. 4(8), pp 333-337

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Original Research Articles

Impact of Contributory Pension Scheme on Economic Growth in Nigeria

Dr. Nwanne, T. F. I. Ph.D, HCIB

Department of Accounting/Finance, Faculty of Management and Social SciencesGodfrey Okoye University, Enugu.Email: freemannwanne@yahoo.com

Accepted 19 September 2015

Abstract 

The study examined the impact of contributory pension scheme on economic growth in Nigeria for the period 2004-2012. The objectives of the study were to determine the impact of pension funds on economic growth and as well as to ascertain the impact of pension savings mobilized on economic growth. The study used Ex-post-facto research design. Ordinary Least Square Regression method was used in data analysis. The study finds that pension funds have negative and significant impact on economic growth while pension savings had positive and significant impact on economic growth. The implication of the finding is that the contributory pension scheme has achieved the objective of using pension funds to provide long term capital that will promote economic growth.  It also implies that pension savings contribution is low an indication of low coverage of the scheme. It was recommended that investment outlets of pension funds should be increased and efforts should be intensified to ensure greater compliance and mobilization of savings from contributors.  

Keywords: PENCOM, NPF, NSITF, NAICOM, Economic Growth, PAYG.