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The Impact of Nigeria’s New Pensions Reform on National Savings: Empirical Evidence

The Journal of Accounting and Management

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Title The Impact of Nigeria’s New Pensions Reform on National Savings: Empirical Evidence
 
Creator Okweshine, Werikechukwu J.; University of Benin
Kanwanye, Hilary T.; University of Benin
 
Description The study used a simple Keynesian macroeconomic framework to examine the effect ofthe new pension reform scheme on national savings in Nigeria during 2007-2016.Annual data of the relevant variables were obtained from secondary sources thatinclude the National Pension Commission (Pencom), National Bureau of Statistics2016, World Bank country data 2016, and the Central Bank of Nigeria bulletin 2016.The ordinary least squares (OLS) regression technique was utilized for the analyses.Empirical results show that pension assets have a significant negative effect onnational saving, hence, an increase in pension assets hinders the growth of nationalsavings in Nigeria. This situation can be explained by the continuous pension debtpaid by the government to individuals who transited from the old to the new pensionscheme. The results also show that income and deposit rates have a significant positiveimpact on savings. Finally, budget deficit and national savings are inversely related,with the former having a significant influence on the latter. The study recommendsthat the government should finance pension debt using tax; and that the pension fundshould be invested in infrastructural development.Keywords: funded systems, transition, life-cycle model, tax financing, infrastructuraldevelopment
 
Publisher Dar es Salaam University Press
 
Contributor —
 
Date 2020-01-08
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://journals.udsm.ac.tz/index.php/ter/article/view/3071
 
Source Tanzania Economic Review; Vol 9, No 1 (2019): TER
2507-7740
0856-3373
 
Language eng
 
Relation https://journals.udsm.ac.tz/index.php/ter/article/view/3071/3024
 
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