IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 9 NO. 8 2023
DOI: https://doi.org/10.56201/jafm.v9.no8.2023.pg35.45

---

Contributory Pension Scheme and Transitory Job Loss in Nigeria

ASUBIOJO Abayomi Olusesan (FCA), IGBEKOYI Olusola Esther (FCA, Ph.D.) , DAGUNDURO Muyiwa Emmanuel (ACA)

---

Abstract

Surviving the transitional period of job loss before finding a new job poses significant challenges for individuals. Therefore, this study aimed to investigate how the administration of contributory pension schemes affects transitory job loss in Nigeria. Employing an exploratory research design, this conceptual paper reviews existing literature to assess the extent of research on contributory pension schemes and transitory job loss. The study's findings revealed that individuals who lose their jobs encounter difficulties in accessing 25% of their pension contributions. These challenges arise from complex administrative procedures, non-remittance of contributions by employers, and a lack of awareness about the option to access a portion of their contributions in the Retirement Savings Account (RSA) in case of job loss. Moreover, this research indicated that contributors who experienced job loss, particularly during the COVID-19 pandemic, lacked a savings and investment culture, leading to financial hardship during the waiting period to access a part of their RSA contributions. It was concluded that contributors who undergo transitory job loss in Nigeria encounter obstacles in accessing their pension contributions. The study recommends that efforts should be made to simplify the administrative processes involved in accessing pension contributions to ensure a smoother withdrawal experience for contributors facing job loss.

keywords:

Contributory Pension Scheme, Transitory Job Loss, Ease of Access to Funds, Administrative procedures, Retirement Saving Account (RSA) Financial difficulty.

---

References:

Adebayo, A. I., & Dada, R. (2012). Pension Crisis in Nigeria: Causes and Solutions. Journal of
Applied Chemistry, 3 (2), 30-33.

Adeoye, A. O., Kotun, A. I., & Alaka, N. S. (2016). Effect of Contributory Pension Scheme on
employees’ productivity: Evidence from Lagos State Government. African Journal of
Business Management, 10(16), 384-396.

Aibieyi, S., & Oyemwinmina, C. (2016). An overview of the Nigerian Contributory Pension
Scheme (2004 and 2014 Pension Act). European Journal of Business and Management, 8.

Akhiojemi,B. O., Ifeanacho, M.I., & Abu. O. (2018). Pension Fund Management and Welfare of
Retirees in Selected Management Development Institutes Mdis) in Nigeria. International
Journal of Humanities and Social Science Invention, 7 (11), 60-69.

DOWNLOAD PDF

---

Back