Title: Pension Reform Act of 2014 In Nigeria: A Comprehensive And Critical Appraisal
Authors: Kachidobelu John Bielu, BL, LLM, PhD,
Volume: 9
Issue: 4
Pages: 39-45
Publication Date: 2025/04/28
Abstract:
The Pension Act seeks to make funds in the Retirement Savings Account under the Contributory Pension Scheme more easily accessible to retirees. The reason is that the retirees rather than enjoy retirement after selflessly serving their father land have continued to live in misery and pain, leading to diseases and even death as they cannot easily access their benefits. The 2014 Act marks the pivotal role in the development of Nigeria's evolving pension landscape and reflecting the government's commitment to creating a sustainable and equitable system for the country's workforce, means that much is expected to be achieved. The significant challenges which include issues related to the enforcement of compliance, the effectiveness of PenCom's oversight, the transparency of pension fund administration and the adequacy of the benefits provided under the current system still persist. The Act's impact on both the formal and informal sectors raises questions about its inclusivity and long-term sustainability. This critical appraisal seeks to delve into the complexities of the Pension Reform Act of 2014, examining its achievements, shortcomings and the broader implications for pension administration in Nigeria. This study aims to provide a comprehensive evaluation of the Act's effectiveness in meeting its objectives. The methodology adopted by this work is doctrinal method of legal research, adopting analytical approach in examining the extant laws and literature. The source of data collection for this work are primary sources of law such as the Constitution of the Federal Republic of Nigeria, statutes and conventions, case laws and secondary sources of laws such as internet materials, journals articles and textbooks of renowned authors, a comprehensive analysis of relevant statutes, international legal instruments, case laws, journal articles and others.. The work found that the Pension Reform Act of 2014, with some achievements is bedeviled with a lot of shortcomings which have broader implications for pension administration in Nigeria. The legislative intent, the practical outcomes and the ongoing challenges outweigh the gains. The research recommend that the National Pension Commission (PenCom) must enhance its oversight functions by enforcing stricter compliance measures among employers and Pension Fund Administrators (PFAs), ensuring that all parties adhere to the mandatory contribution rates and other provisions. There should be more frequent audits, heavier fines for non-compliance and real-time monitoring of pension contributions to prevent mismanagement and secure the financial future of retirees