Dynamics of nigerian pension reforms: The gateway towards workers’ welfare guaranteed retirement

The paper provides an outlook on the development of the contributory workers’ retirement pension scheme in Nigeria. Insights were presented into the emergence of pay-as-you-earn retirement benefits scheme, a condition in which final entitlements were based on length of service and terminal emoluments. The payment of pension and gratuities to retiring workforce financed by the government at the outset becomes a burden because there were no fiscal considerations consequent on inadequate management and administration of pension funds for both public and private employees. The new contributory pension scheme tends to uplift pension fund management in Nigeria with obvious benefits for employers, employees, government and the society. The Pension Reform Act 2004 mitigates those risks which can hinder the pension industry's operations as stipulated in the Act for smooth operations of the Pension Fund Administrators.