The Effect of Funded Pension on the Economic Growth in Nigeria
Mathew Olasehinde Fashagba, PhD
Department of Business Administration
Ibrahim Badamasi Babangida University, Lapai, Niger State
E-mail: mfashagba@yahoo.com
ABSTRACT
Contributory pension scheme was adopted in 2004 in Nigeria in order to solve the crisis laden old pension scheme. The scheme provides for funds through contributions from both employers and employees in the country for the employee’s retirement benefit. The funded created by the adoption of the new scheme has enhanced the financial deepening. The objective of the study is to seek the effect of the new scheme on the economic growth in Nigeria. The study employs secondary data of the gross domestic product and pension funds from both public sector and private sector for period in ten years due to availability of data. The method of data analysis used in the study is ordinary least square. The study finds empirical evidence that the adoption of the new pension fund have significant positive impact on the economic growth in Nigeria. The study recommends for the consolidation of the contributory pension scheme to enhance the economic growth of the country,
Keywords: Private Sector, Public Sector, Pension Scheme, Economic Growth
