Contributory Pension Fund Assets and Economic Performance of Nigeria

Abstract

This study examined contributory pension fund assets on economic performance of Nigeria, specifically, to determine the impact of pension fund assets on the real capital market capitalization in Nigeria. The proxies for measuring pension fund assets included ordinary shares, government securities, corporate debt securities, money market instruments, real estate property and other securities. To achieve the stated objectives, the study adopted the exploratory research design and employed the ordinary least square (OLS) estimation technique within the modelling framework of autoregressive distributive lag (ARDL) analytical methods in testing and in the estimation of the relevant equations. The findings from the analyses revealed that the relationship between pension fund assets and real capital market capitalization in Nigeria was found to be positive and significant in the long run as well as in the short-run. In conclusion, contributory pension fund asset has effective and efficient capacity in boosting economic performance (capital market capitalization) in Nigeria. Based on the findings from this study, there should be more investment of pension fund in ordinary shares, government securities, money market instruments and other forms of assets in order to boost credit to core private sector in Nigeria.