The Nigerian pension system: Reform and expectations

Abstract

Before the adoption of the new pension scheme in 2004, Nigeria's social security provision for the retired and aged was awkward. Most private sector establishments did not accord any priority to their retired workers after years of service. The newly introduced contributory pension scheme is seen as an important social security system that could address both structural and institutional dysfunctions in the country's social security obligations. This article examines, therefore, some salient issues about the scheme and people's expectations of it. By assessing its benefits and challenges, the article underlines the need for a strong structural and institutional framework to achieve the objectives of the scheme. © 2010 Macmillan Publishers Ltd.