Managing Retirement Risk: Policy Choices in Pension Fund Administration
By Fawaz Adediran & Oluwatobiloba Yomi-Oshatimi
This article critically examines the legal and institutional framework governing pension administration and Pension Fund Administrators in Nigeria under the Pension Reform Act 2014. It analyses the structure of the contributory pension scheme, focusing on the statutory separation between Pension Fund Administrators and Pension Fund Custodians as well as the fiduciary obligations imposed on administrators, and the supervisory mandate of the National Pension Commission. The study situates Nigeria’s pension reforms within the broader global shift from unfunded public schemes to regulated, privately managed contributory systems.
Adopting a doctrinal and comparative policy methodology, the article evaluates Nigeria’s regulatory framework alongside selected frontier markets like India, Singapore and South Africa with similar reform trajectories. The comparison considers a various number of factors including, but not limited to; governance standards, supervisory approaches, investment regulation, and mechanisms for risk control and contributor protection. While Nigeria’s framework demonstrates important structural safeguards and significant asset growth, gaps remain, particularly within the informal sector.
The article argues that strengthening risk based supervision is necessary to consolidate public trust and ensure the long term sustainability of Nigeria’s pension system.
Source SSRN
