PENSION SYSTEMS IN NIGERIA: ISSUES AND CHALLENGES

Abstract

Globally, pension schemes are bedeviled with lots of challenges. Pension scheme was introduced in Nigeria in 1951 by the colonialists. Since then, successive Governments have embarked on numerous pension reforms in order to improve the welfare of retirees. Pension is a major welfare scheme put in place by the Government to take care of the aged in the society. Introducing a pension scheme that is efficient, effective and sustainable has a positive impact on the performance of workers. The knowledge that an employer cares for a worker by going ahead to plan for the worker’s future will encourage a worker to give his/her all, to ensure that organizational or governmental goals are met. This, will ultimately lead to attainment of overall economic growth and development. This paper has set some goals for itself, one, it will undertake an overview of pension systems in Nigeria. Two, it will interrogate the features and challenges of past pension schemes. Three, to evaluate the benefits of Contributory Pension Scheme. Four, to determine the challenges of the present pension scheme. The secondary means of data collection was employed. The paper recommends that Government should make provision for the review of retiree’s pension; this is because of very high inflation which the country has persistently experienced. Government should ensure that every worker, including all workers in the private organizations are enlisted in the Contributory Pension scheme. This will ensure that every retiree’s welfare is taken care of.