CBN Journal of Applied Statistics (JAS)
Keywords
Contributory pension scheme, economic growth, pension fund asset, pension fund contribution.
Abstract
This study examines the transmission effect of contributory pension scheme on Nige ria’s economic growth using quarterly data from 2010 to 2023. Thestudyis grounded in the Solow growth and Harrod–Domar models as its theoretical framework and employs a Structural Vector Autoregression (SVAR) approach for data analysis. The results show that economic growth responds positively to changes in pension fund assets and contributions. It also reveal that pension fund assets respond positively to changes in pension fund contribution in Nigeria. The study recommends that gov ernment should intensify efforts to encourage employers and employees in the in formal sector, as well as local and state governments, to actively participate in the contributory pension scheme. With higher compliance and wider coverage, more savings in pension funds can be mobilized for investment, driving further economic growth. Furthermore, PenCom should ensure effective monitoring and supervision, and enforce strict penalties for public and private sector defaulters who deduct pen sion contributions but fail to remit them to Pension Fund Administrators on time, as this behavior hampers investment and economic growth.
Issue
1
Volume
16
First Page
67
Last Page
89
Recommended Citation
Udaah, IORTYOM and Akiri, Sunday E.
(2025)
"Transmission Effect of Contributory Pension Scheme to Economic Growth in Nigeria: Structural Vector Autoregressive (SVAR) Approach,"
CBN Journal of Applied Statistics (JAS): Vol. 16:
No.
1, Article 3.
DOI: https://doi.org/10.33429/Cjas.16125.3/6
Available at:
https://dc.cbn.gov.ng/jas/vol16/iss1/3