Methodological Analysis of Pension Administration in Nigeria : Questionnaire Survey Findings - Lessons for Developing Countries

The Contributory Pension Scheme (CPS), introduced by the Nigerian Federal Government in June 2004 as part of government's administrative reforms, is gradually changing the tempo of pension administration in Nigeria. The authors of this paper have done some studies on it vis-à-vis the former pension scheme – Defined Benefits Pension Scheme (DBPS). We have highlighted the values, such as assured funds for pension payment and challenges, such as inadequate information from pension fund administrators (PFAs) and considered the implications of these for the public workers' productivity and welfare. Using the bench mark and survey approaches, the paper found that the CPS seems to be of more benefit to the government than the employees and retirees. Opinion survey of respondents revealed that Nigerian workers prefer the DBPS to the CPS. The paper gave some reasons for the development, including the fact of non-participation of the workers in the decision processes leading to the establishment of the CPS and the hardship that the contribution of a percentage of salary tends to inflict on workers. And of course, there is the issue of the lower monthly pension benefits than what obtains in DBPS. For the scheme to succeed and enhance its acceptability, the public workers' productivity and welfare, some suggestions have been proffered. These include involvement of stakeholders in the review of the scheme so as to streamline it, upgrading monthly pension payment, and removing other grey areas. Thus, some African countries can benefit from Nigeria's experience