A review of babatunde alayande’s “funded pension, financial sector development and economic growth in nigeria”

Abstract

Based for the most part on the inadequacies of the defined benefit scheme (DBS) more because of the DBS‟ financial unsustainability and lack of capacity to enhance and entrench economic growth, Babatunde Alayande‟s article analyzes the behavior of both the DBS and the contributory pension scheme (CPS) in the context of the Nigerian economy, and the country‟s strong desire for funds and investments towards development. The article emphasized the influence of funded pension (as a savings stock) in spurring financial growth and enhancing development project financing. In sum, pension reform is identified as crucial because of its economic effects considering the link between contributions and benefits, pension funds contribution to financial markets development, and the efficiency of the public finance system.