The Nigeria pension administration started in the 1950s. The Pension Reform Act of 2004 and Revised Pension Reform Act of 2014 brought about the new pension scheme in Nigeria which is a defined contributory scheme unlike the old scheme which was largely defined benefits. This study focuses its attention on the assessment of contributory pension scheme in a bid to make inquiry on its benefits and challenges over the years. The study adopts secondary data for data collection and content analysis

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... or the explanation data collected. The study finds out that regular upward reviews of pensions and gratuities in Nigeria without appropriate methods of financing the scheme has become a major problem, which needs prompt attention in order to alleviate the hardship of pensioners in the country and concludes that based on the challenges facing the operation of the contributory pension scheme that seem outweighing its benefits, the pension scheme may end up the way previous schemes ended as well as recommends that the Nigerian government should make a legislation and encourage the option of having the banks where the salary accounts of employees are domiciled to make pension deduction on monthly basis possible and have it remitted to the Pension Fund Administrators.