Critical Research on Impact of Contributory Pension Scheme on Economic Growth in Nigeria

The study examined the impact of contributory pension scheme on economic growth in Nigeria for the
period 2004-2012. The objectives of the study were to determine the impact of pension funds on
economic growth and as well as to ascertain the impact of pension savings mobilized on economic
growth. The study used Ex-post-facto research design. Ordinary Least Square Regression method
was used in data analysis. The study finds that pension funds have negative and significant impact on
economic growth while pension savings had positive and significant impact on economic growth. The
implication of the finding is that the contributory pension scheme has achieved the objective of using
pension funds to provide long term capital that will promote economic growth. It also implies that
pension savings contribution is low, an indication of low coverage of the scheme. It was
recommended that investment outlets of pension funds should be increased and efforts should be
intensified to ensure greater compliance and mobilization of savings from contributors.