Governance, Regulatory Challenges, and Pension Fund Mismanagement in Nigeria's Contributory Pension Scheme: Implications for Retirees' Welfare

Abstract

This study investigates the challenges undermining the effective implementation of Nigeria’s Contributory Pension Scheme (CPS) and assesses their impact on the welfare of retirees. The research focuses on two key objectives: (1) to examine how poor governance and regulatory issues affect the proper functioning of the CPS and (2) to evaluate the influence of pension fund mismanagement and weak accountability practices on retirees' trust in the system. The study draws on both qualitative and quantitative data, employing surveys, focus group discussions, and documentary analysis to explore the relationship between employers' failure to remit contributions, corruption in pension administration, and the financial security of pensioners. The findings reveal that weak governance structures, insufficient regulatory frameworks, and corruption within pension management have significantly delayed pension payments, reduced retirees’ confidence in the system, and exacerbated their financial instability. The study emphasises the urgent need for robust regulatory oversight, transparency, and accountability to restore trust and enhance the financial security of retirees. Furthermore, it calls for comprehensive reforms in pension administration to ensure timely pension disbursements and the sustainable management of pension funds, ultimately improving retirees' welfare and ensuring the long-term success of the CPS in Nigeria.