SALEM JOURNAL OF BUSINESS AND ECONOMY

CONTRIBUTORY PENSION AS A PANACEA FOR ECONOMIC DEVELOPMENT: THE NIGERIAN EXPERIENCE

FRIDAY BARIDOO
April 9, 2026

Abstract

The Contributory Pension Scheme (CPS) in Nigeria represents a major reform aimed at addressing the inefficiencies of the erstwhile Defined Benefit Scheme. This study examines CPS as a strategic tool for economic development, focusing on its contributions to capital formation, financial market development, savings mobilization, and social security. Using descriptive and analytical approaches and drawing on existing literature, the study finds that CPS has significantly enhanced long-term fund availability and contributed to economic growth in Nigeria. However, challenges such as limited coverage, compliance issues, and investment constraints persist. The study concludes that while CPS is not a complete solution, it remains a critical driver of sustainable economic development in Nigeria.

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SALEM JOURNAL OF BUSINESS AND ECONOMY

Published in SALEM JOURNAL OF BUSINESS AND ECONOMY

ISSN: 627-44669

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