AN EVALUATION OF THE NIGERIAN PENSION SCHEME WITH SPECIAL REFERENCE TO MILITARY PENSION PLANAN EVALUATION OF THE NIGERIAN PENSION SCHEME WITH SPECIAL REFERENCE TO MILITARY PENSION PLAN

AN EVALUATION OF THE NIGERIAN PENSION SCHEME WITH SPECIAL REFERENCE TO MILITARY PENSION PLAN

ABSTRACT

In recent years, the plight of pensioners, especially former military personnel, has dominated the headlines, prompting the authority in Nigeria to undertake a reform of the country’s pension system. The aim of this research work is therefore, to evaluate the causes of the failure of the defined benefit pension scheme in Nigeria and to recommend measures that will ensure the success of the newly introduced defined contribution pension scheme. To achieve these objectives the research reviewed literature on pension, underscoring the merits of pension reforms commonly associated with a switch from a defined-benefit (DB) to a defined contribution (DC) pension system. We also used data from a cross section of 360 both former and serving staffs of the Nigerian military service to gauge the extent of their satisfaction with the DB scheme. Using F-tests obtained from the one-way analysis of variance, hypotheses were tested. The main results emanating form the study can be grouped into a couple of categories. One, our results show that the defined benefit pension scheme suffered from a glaring lack of commitment by the military pension authority to ensure efficient service delivery to the pensioners. According to the findings of this research, lack of commitment of the authority is manifested in a number of ways, such as poor administration manifested in over-centralization of the pension agency, with a poorly administered organ being responsible for pensioners nationwide. Our results also show that Nigeria’s defined benefit scheme suffered from not only inadequate funding but also from flagrant refusal of the military to subject their operations to regular audit, an important requirement for transparency and sound governance. Our main policy conclusion is that while the reforms of the country’s pension is in order and laudable, lessons from this research suggest that adequate cares should be taken to ensure that the relevant military pension authorities stick to the requirement of regular audit, and avail themselves of the opportunities offered by modern information and communication systems that allow for computerization of pension records for efficiency, transparency and effective management.

TABLE OF CONTENT

Title page- – – – – – – – – i
Approval page – – – – – – – -ii
Dedication – – – – – – – – -iii
Acknowledgement – – – – – – – -iv
Abstract – – – – – – – – – -v
Table of content – – – – – – – -vi

CHAPTER ONE
INTRODUCTION – – – – – – – -1
1.0 Background of the study – – – – -1
1.1 Statement of the problem – – – – -5
1.2 Purpose of the study – – – – – -6
1.3 Significance of the study – – – – -8
1.4 Research questions – – – – – -9
1.5 Scope of the study – – – – – – -10

CHAPTER TWO

LITERATURE REVIEW – – – – – – -11

CHAPTER THREE

Research methodology – – – – – – -39
Design of study – – – – – – – -40

CHAPTER FOUR

Presentation, analysis and interpretation of data – -48

CHAPTER FIVE

Summary of findings – – – – – – -60
Conclusion – – – – – – – – -61
Recommendations – – – – – – – -62
Suggestions for further research – – – – -64
References – – – – – – – – -65
Appendix I – – – – — – – – -68
Questionnaire. – – – – – – – -69

AN EVALUATION OF THE NIGERIAN PENSION SCHEME WITH SPECIAL REFERENCE TO MILITARY PENSION PLAN