EFFECT OF PENSION CONTRIBUTION ON ECONOMIC GROWTH IN NIGERIA

Abstract

This study examined the effect of Pension Contribution (PC) on economic growth in Nigeria. The time series data used in this study were for a period of twelve years (2005 - 2017). Data were collected from the Annual Reports of National Pension Commission (PenCom). The study anchored its theory on the “theory of intermediation” and the study also employed sophisticated econometrics statistical tools like unit root test, the ordinary least square, and granger causality test. The econometric results indicated that PC has negative and insignificant relation. The insignificant relationship of PC on economic growth in Nigeria could also be as a result of Pension fund looting and non-remittance of pension contribution over the years. This study therefore recommends that efforts should be intensified to incorporate pension as a course of study in our higher institutions of learning, just as we have insurance as a course of study in our higher institutions, and also regulatory authorities should collaborate and generate a Reporting Software’s and data base of the names of organizations whose staff ought to contribute. This will make the supervisory function of the regulatory authority more efficient and effective.