IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 9 NO. 7 2024
DOI: 10.56201/ijefm.v9.no7.2024.pg1.17

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Contributory Pension Scheme and Human Capital Development in Nigeria

OTEME, Blessing Avwerosuo & Prof. ONUORAH, A. C. (F, CIFIAN)

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Abstract

This study examined the effect of contributory pension scheme on human capital development in Nigeria. The study was carried out in Nigeria for the duration of 2005-2022 (18years). The study made used of secondary data (Time Series) sourced from the PENCOM Annual Report and UNDP Human Development Reports on the variables under study. The contributory pension scheme was proxied with Public Sector Pension Fund (PBSPF), Private Sector Pension Fund (PVSPF), Pension Fund Investment (PFI), Retirement Savings Account (RSA) and Total Pension Fund (TPF) (Independent Variables) were examined on how it influences the human capital development proxied with Human Development Index (HDI) (Dependent Variable) in Nigeria. The data was analyzed with descriptive statistics, correlation matrix several diagnostics tests (VIF, validity test, ADF and Engle-Grager Cointegration tests) and the Ordinary least multiple regression analysis with E-VIEW 9.0. Based on the results, it was determined that PBSPF, PVSPF, PFI and TPF had a positive and significant impact on HDI while RSA has negative and insignificant effects on HDI in Nigeria. It was concluded that contributory pension scheme has significant effect on HDI in Nigeria. The study recommended that the Nigerian government should ensure that public sector pension funds are effectively managed and transparent to build trust among employees. This can have a positive impact on HDI by providing security and stability for public sector workers, encouraging them to focus on their career growth and productivity.

keywords:

Contributory, Pension, Scheme, Human, Capital and Development

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