http://www.economist.com/news/finance-and-economics/21627721-after-unpromising-start-nigeria-beginning-encourage-local-saving-and
Nigeria has had a country-wide unfunded pension issue. Retirees often went unpaid and even private companies refused their obligation to pay. Nigeria changed their pension schemes in 2004 and since then, the fund has grown by 25% in assets every year. Nigeria has a large portion of the population that is involved in informal jobs. This sector does not have a system to fund workers into retirement, and many go without funds for the latter part of their life. Out of 80 million people, only 6 million are involved in a formal pension scheme. The reform also states that investments must remain in Nigeria, giving much needed aid to railroads, bridges, etc.
What do you think about the solution to this issue in Nigeria?
As poverty levels continue to rise in Nigeria, so, too does the social demand on government. It appears poverty alleviation was the primary motivator for the pension reform. With the reform, hopefully we will continue to see improvement in the post-retirement lives of workers in Nigeria, as well as the country itself.
ReplyDeleteA lot of people who are involved in these informal businesses do not even have a clue what pension is and what benefits they can get. Literacy rate is relatively low. In my opinion if these people were aware about these benefits i believe something will be done about it. Some of these people are so poor that in their heads, they plan to work forever, until they can't anymore. Most of these people are single mothers and fathers that have to take care of the whole family. conditions in Nigeria and other parts of Africa face this problem. There is no awareness
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