Corporate Governance and Pension Management in Nigeria
IOSR Journal of Humanities and Social Science
Beginning from the 1980s, the public sector in Nigeria was faced with ethical crisis. There were severe economic problems resulting from poor performance of public institutions, poor social services delivery, dwindling cash base and financial sustainability crisis orchestrated by bureaucratic corruption. In the pension subsector, huge pension liability, lack of transparency and accountability and the absence of regulatory and supervisory framework were the characteristic phenomenon. The result
... omenon. The result was institutional failure and the consequent alienation and dehumanisation of pensioners whose post retirement life became associated with socio-economic slavery. In 2004, the Nigerian government took significant step to transform the pension industry into a viable industry with guaranteed social returns for pensioners via the Pension Reform Act 2004. New regime of pension fund managers was licensed to operate within the regulatory framework provided by the National Pension Commission. In its analysis, the paper appreciates the significant achievement recorded in the pension industry with the introduction of the Pension Reform Act 2004 which set ethical standard for the management of the pension scheme and integrated the private sector in the management of pension funds. The paper in its analysis acknowledged the efficient result achieved so far and called for the strict enforcement of regulatory provisions in the pension industry and civil society activism to strengthen the culture of financial accountability and the sector's performance in alleviating old age poverty among retirees.