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Title: | Financial performance adequacy of pension fund managers in Nigeria |
Authors: | Afolabi, Adeoye A. Erasmus, Lourens J. |
Keywords: | Pension trusts -- Nigeria Securities -- Nigeria Pensions -- Effect of inflation on -- Nigeria Cointegration |
Issue Date: | 2023-04 |
Publisher: | Istanbul Business Academy |
Citation: | Afolabi, A. A., & Erasmus, L. J. (2023). Financial performance adequacy of pension fund managers in Nigeria. Journal of Accounting, Finance and Auditing Studies, 9(2), 96-115. |
Abstract: | PURPOSE: Traditionally, the Nigerian pension fund system was based
on a defined benefit scheme for the public and private sectors and
coincided with serious challenges in the payment of retirement
benefits to retirees. These challenges led to the introduction of a
defined contribution scheme in terms of the Pension Reforms Act.
Since the management of pension fund assets is the sole
responsibility of pension fund managers, there is a need to
investigate the adequacy of pension fund managers’ financial
performance since the change in pension fund regime. The pertinent
research question in the study was: To what extent do pension cost
incurred, revenue, the inflation rate and total contribution affect
benefits paid and cash inflow? The extent to which federal
government bonds, securities, total contribution and the inflation
rate affect investment income were also examined. METHODOLOGY: Autoregressive distributed lag (ARDL) cointegration and multiple regression were used in the analysis of the data. FINDINGS: The results of the study revealed that in both the shortterm and long-term analysis, other costs incurred by pension fund management lead to lower benefits paid to retirees. Furthermore, higher administrative costs lead to higher benefits paid, given that increases in administrative costs promote higher inflow contributions, and investing in federal government bonds and, in particular, Treasury bills promotes higher investment income. Thus, securities increase investment income, and the higher the inflation rate, the higher the investment income. ORIGINALITY/VALUE: The policy implication signifies a need to reduce pension costs incurred on pension fund management and to encourage more investment in real assets that can militate against inflation. |
URI: | https://www.um.edu.mt/library/oar/handle/123456789/109245 |
Appears in Collections: | Journal of Accounting, Finance and Auditing Studies, Volume 9, Issue 2 Journal of Accounting, Finance and Auditing Studies, Volume 9, Issue 2 |
Files in This Item:
File | Description | Size | Format | |
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JAFAS9(2)A5.pdf | 461.39 kB | Adobe PDF | View/Open |
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