Appraising the Efficacy of the Contributory Pension Scheme in the Nigerian Private Sector

Abstract

Since Nigeria switched from the defined benefit scheme to the Contributory Pensions Scheme, in the year 2004, the landscape has been besieged with surge of academic contribution appraising the efficacy of the new scheme, mostly in the public sector, with the private sector lacking in this regard. The study intends to know if these employees are enrolled under the contributory pension scheme and reason why private sector organizations are lackluster in the administration of the scheme. The study adopted the descriptive research design by using the survey method to administer 150 questionnaires to identified sample of wholly private sector employment in Abuja. Data was presented through the use of frequency distribution tables and interpreted through the use of simple percentage and histogram curve. Findings from respondents’ shows that most private sector employees are not enrolled under the scheme and also indicate that harsh economic climate is responsible for the casual attitude of the private sector employer in adhering to the scheme. Going by the above findings, the study suggested adequate regulation of activities of the private sector in other to stem the tide of persistent infraction.