Postmortem Analysis of the Old Pension Scheme in Nigeria for Historical Archival Documentation (1979-2000)

Abstract

The old pension scheme in Nigeria which became effective April 1974, but was backed up by an enabling law in 1979, was fraught with problems of different magnitudes and complexities. For example, the findings of the study indicate that lack of accountability, transparency, mismanagement of funds and corruption to mention but a few were very rampant and consequently denied the retirees the payment of their benefits and other legitimate entitlements on retirement. The resultant negative effects on the retirees were many and best imagined than experienced. For instance, many retirees died out of shock, heart attack, stress on regular calls for verification of pensioners and other serious life threatening hardships to which they were subjected simply to be eligible to be paid the so-called gratuity and pension in Nigeria, which they were never paid and the money eventually end up in the bank accounts of the public officers that supposedly manage the pension funds on behalf of the retirees. Consequently, the new pension scheme was introduced in 2004, by the Administration of President Olusegun Obasanjo to effectively address the inherent pitfalls identified with the old pension scheme which made its administration and management very difficult, if not impossible. The present study is an attempt to document for scholars and researchers, the Government structure, regulations and the dynamic nature of the old pension’s administration in Nigeria for historical, archival significance. The findings and recommendations of the study, it is believed will help to improve the current pension administration introduced in the country in 2004.