CONTRIBUTORY PENSION FUND AND ECONOMIC DEVELOPMENT OF NIGERIA

Abstract

This study investigated the effect of contributory pension fund on economic development of Nigeria, using both time series and explanatory research design. The validity of using the time series is attested to the researchers’ inability to manipulate the data. Data for the study period (2019-2025) were extracted from the National pension commission (PENCOM), and Central Bank of Nigeria (CBN) Statistical Bulletin, 2025. The population and sample size of this study comprised of 17year annual observation the study. The data were analyzed using the Econometric Model of Linear Regression techniques using the R statistical package. The macroeconomic data (components of contributory pension fund on economic development (gross real domestic products)) were employed in this study. The study found that contributory pension fund had positive strong relationship with economic development of Nigeria The researcher therefore, concluded that there is a significant relationship between public contributory pension fund and RGDP in Nigeria. Also, the researcher concluded that there is a significant relationship between private contributory pension fund and RGDP in Nigeria. In the light of the foregoing, the study recommends that the institutions of governance need to be strengthened to walk the path of maximum benefit for the Nigerian workers; employees should be made to understand that even within the new system they can still access up to 25 per cent of their retirement savings as a single bulk payment to enable them start a new business or deal with the issues of transition from active employment to retirement among other things.