IMPACT OF PENSION FUND MANAGEMENT ON ECONOMIC GROWTH OF NIGERIA

ATTENTION:

BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!

INFORMATION:

YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL PROJECT COSTS N5,000 ONLY. THE FULL INFORMATION ON HOW TO PAY AND GET THE COMPLETE PROJECT IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN CALL: 08068231953, 08168759420

IMPACT OF PENSION FUND MANAGEMENT ON ECONOMIC GROWTH OF NIGERIA

ABSTRACT

This study examined the impact of pension fund management on the economic growth of Nigeria. To achieve this research objective, relevant data were sourced from National Pension Fund (PENCOM) and National Bureau of Statistics (NBS) for the period spanning from 2009-2013. The study adopted Multivariate Linear Regression Analysis. Ex-Post-Facto research design was used for this study. The explained variable is Gross Domestic Product (GDP) proxy for economic growth, Pension Fund Investment (PFI), Income from Pension (IFP) and Pension Welfare (PW) are proxies for pension fund management, the explanatory variable. The study confirms our apriori expectation. The study showed that GDP depends positively on Pension Fund Innvestment (PFI) and Pension Welfare (PW) and negatively on Income from Pension (IFP), but all the explanatory variables were insignificant at 0.05 level of significant since their SPSS Sign P-value were greater than the chosen level of significant. The coefficient of determination R2 =0.982 (98.2%) showed that the estimated model has high explanatory/expandability (predictive) power. The Durbin-Watson statistic indicates the absence of autocorrelation in the model specified. Therefore, economic growth is not driven by pension fund management and that pension fund management has not significantly impacted on economic growth of Nigeria. The study therefore, recommends that individuals should be enlightened on the benefits of the pension schemes so that they will not take opposing actions against the goal of the pension reforms.

CHAPTER ONE

1.0 INTRODUCTION

1.1 AN OVERVIEW OF THE STUDY

Business organizations all over the world, whether profit making or non-profit making is made up of either the human element or the material component. These vital parts separate work interdependently for the attainment of the organizational goals. Therefore, for organization to achieve its goals and objectives, the workforce must be duly motivated.

According to Ibe (2012), “The beauty of the struggle of labourer is in the eating of salaries or wages.” He further noted that the privilege of receiving pension and gratuity appear to be the greatest manifestation of the victory of a labourer after a long service to his or her employer.

It is paramount to note that even though the labourer earns wages or salary today, his concern should also be about tomorrow when he is no longer fit to carry on any productive activity. Mohammed (2012), stressed the importance for the average Nigerian worker to look for a pensionable job for stability of the employment contract. The labourer has to look forward to the enjoyment of a favourable welfare package when he leaves employment due to old age. With the institutionalization of pensionable employment, the attractiveness of any employment contract is being judged in terms of whether it is pensionable or not.

Ibe (2012) says the rationale behind any individual entering the labour market is therefore hinged upon the nature of the job i.e. pensionable or non-pensionable jobs and this is governed by a set of parameters that he needs to make some assumption about their future value. They include:

Change in the remuneration of the jobs.

The rate of inflation.

The prevailing interest rate in the economy.

The size, survival, profitability, and future solvency of the employee.

Profitability of major external destabilizing force (pension commission) 2012 pension fund act.

Ahmadu (2012) however frowned at the Nigerian pension scheme. He strongly criticized the pension system as:

Overdependence on budgeting pension.

Weak, inefficient and poor staffing/equipment and administration.

Low compliance level from private sector.

Inadequate pension.

Delay in payment

The above problems therefore increase the call for a better pension fund administration which is service driven and pension oriented. The research work shall focus on the impact of effective management of pension fund in Nigeria economy.

1.2 STATEMENT OF THE PROBLEM

The Nigerian pension system is bedeviled by enormous problem ranging from the failure of the scheme to contribute basic social security for the aged to the inadequacy of the administrators to effectively invest funds accumulated from pension scheme. The problems faced by the Nigerian pension commission (PENCOM) are as follows: channeling of pension fund to inappropriate investment source. This Ahmadu (2010) noted that Nigerian pension scheme is largely unsustainable due to the poor returns of investment, the proceeds of the pension scheme are not properly managed, the apparent low level of employment offered by the pension scheme. The National pension commission (PENCOM) as the regulatory body was weak in enforcing regulatory compliance, and the non transferability of pension benefit and poor record keeping. The above challenges vis-à-vis has negative impact on the economy therefore calls for the study.

Hence, this research work shall focus on the impact of pension fund management on the Nigerian economy with a view to achieving better service delivery for all pensioners in the nation.

1.3 OBJECTIVE OF THE STUDY

The broad objective of this study is to investigate the relationship between pension fund management and economic growth of Nigeria. The specific objectives are to:

Examine whether pension fund investment leads to economic growth of Nigeria.

b. Determine the effects of income from pension on economic growth.

c. To determine whether economic growth is driven by pension welfare.

1.4 RESEARCH QUESTIONS

Olannye (2006) defined the research questions as set of questions which the researcher hoped the entire study would answer. The study seeks to answer the following questions.

Does pension fund investment lead to economic growth of Nigeria?

Does income from pension fund have effect on economic growth of Nigeria?

Is economic growth driven by pension welfare?

1.5 HYPOTHESES

Leedy and Ormrod (2000) defined research hypothesis as a topical supposition or reasonable guess, an educated conjecture that provides a tentative explanation for a phenomenon under investigation.

The research hypothesis is important because it guides the research in his/her thought process towards the solution of the research problems or sub-problems. The research hypothesis is developed from the research question and the main elements of the study are summarized in a form that established the form for testing, statistical and ultimately research significance, Sacket (2000).

The hypotheses for the research work are as follows:

H01: There is no significant relationship between pension fund investment and

economic growth of Nigeria.

H02: There is no significant relationship between income from pension and economic growth of Nigeria.

H03: There is no significant relationship between pension welfare and economic growth of Nigeria.

1.6 SCOPE OF THE STUDY

This research work is centred on the “Impact of pension fund management on the economic growth of Nigeria.” The study covers the performance of National Pension Fund, Nigeria over a period of five years (2009-2013).

1.7 SIGNIFICANCE OF THE STUDY

The study is expected to build on previous studies in the subject area of pension fund administration. It is also expected to serve as a base for future researcher who may want to drive into this area of study.

It is hoped that this study will help in the reform of PENCOM of Nigeria and to make it more efficient and effective as well as positioning it to global standard. Lastly, it is hoped that it will ensure non-interference of economic and political factors.

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5,000) into our bank Account below, send the following information to

08068231953 or 08168759420

(1) Your project topics

(2) Email Address

(3) Payment Name

(4) Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08068231953 or 08168759420