The 2014 Pension Reform Scheme: Challenges and Prospects of Shaping the Future of Pension Administration in Nigeria

Abstract

The 2014 Pension Reform Scheme marked a significant shift in the landscape of pension administration in Nigeria, aiming to address longstanding inefficiencies and enhance the financial security of retirees. This paper examines the challenges encountered during the implementation of the scheme, including bureaucratic hurdles, regulatory inconsistencies, and the limited capacity of pension fund administrators. Additionally, it explores the prospects for the scheme to reshape the future of pension administration in Nigeria, emphasizing the potential for improved transparency, increased coverage, and more sustainable financial management practices. Theoretically, this paper takes a critical look at the challenges of pension funding as it per tends to Nigeria using secondary data as its major source. It uses stakeholder theory to analyse the issues involved. The paper finds that poor administrative structure, weak and fractured regulatory system, and incomplete documentation, failure on the part of government to make funds available as well as corruption on the part of government officials were the major challenges confronting the pension funding in Nigeria. The paper provides insights into the critical factors influencing the success and sustainability of the 2014 Pension Reform Scheme, thereby contributing to the discourse on effective pension administration in emerging economies, and offers recommendations for further strengthening the pension system in Nigeria.