The Impact of Nigeria’s New Pensions Reform on National Savings: Empirical Evidence
Werikechukwu J. Okweshine () and
Hilary T. Kanwanye ()
Additional contact information
Werikechukwu J. Okweshine: University of Benin
Hilary T. Kanwanye: University of Benin
Tanzanian Economic Review, 2019, vol. 9, issue 1, 113-132
The study used a simple Keynesian macroeconomic framework to examine the effect of the new pension reform scheme on national savings in Nigeria during 2007-2016. Annual data of the relevant variables were obtained from secondary sources that include the National Pension Commission (Pencom), National Bureau of Statistics 2016, World Bank country data 2016, and the Central Bank of Nigeria bulletin 2016. The ordinary least squares (OLS) regression technique was utilized for the analyses. Empirical results show that pension assets have a significant negative effect on national saving, hence, an increase in pension assets hinders the growth of national savings in Nigeria. This situation can be explained by the continuous pension debt paid by the government to individuals who transited from the old to the new pension scheme. The results also show that income and deposit rates have a significant positive impact on savings. Finally, budget deficit and national savings are inversely related, with the former having a significant influence on the latter. The study recommends that the government should finance pension debt using tax; and that the pension fund should be invested in infrastructural development.
Keywords: funded systems; transition; life-cycle model; tax financing; infrastructural development (search for similar items in EconPapers)
JEL-codes: G23 H55 H75 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ris:tanzer:0006
Access Statistics for this article
Tanzanian Economic Review is currently edited by Jehovaness Aikaeli
More articles in Tanzanian Economic Review from Department of Economics, University of Dar es Salaam Contact information at EDIRC.
Bibliographic data for series maintained by Onesmo Selejio ().