Ijeoma & Nwufo: Sustainability of the Contributory Pension Scheme in Nigeria


This study examined the stability of the contributory pension scheme (CPS) in Nigeria. The objectives of this study includes; to examine whether the CPS has significantly impacted on the economic development of Nigeria; to examine the extent to which CPS has impacted on the development of the Nigerian capital market; and to examine whether there is a sound risk management and effective investment strategy in existence capable of ensuring sustainability of the new scheme. The source of data for this study include primary and secondary source of data collection. The statistical tools employed in the data analysis include the simple regression analysis, the Kruskal-Wallis test and the Cronbach Alpha reliability. The result of this study found there exist a strong positive linear relationship between the contributory pension expenditure and the GDP (gross domestic product) in Nigeria. Also found was that the contributory pension Scheme has significantly
impacted the development of the Nigeria Capital market. In addition, the findings revealed significant evidence of sound risk management and investment strategies in existence to ensure sustainability of the contributory pension scheme in Nigeria. The result of reliability test of the responses obtained using the research instrument obtained a Cronbach alpha value of 89.1%. This result implies that the response obtained possess 89.1% internal reliability and consistent.


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