PENSION COMMISSION'S REGULATIONS AND THE EFFECTIVENESS OF PENSION FUNDS INVESTMENT IN NIGERIA

Abstract

This study examines Pension Commission's (PenCom) regulations and the effectiveness of pension funds investment in Nigeria, focusing on five key variables: quality of investment instruments, conflict of interest, multi-fund structure, investment limits, and voting rights. Using primary data collected through structured questionnaires, administered to stakeholders, the study found that quality of instruments, mutual fund structure and investment limits have significant positive effects on pension fund asset investments, while conflicts of interest mitigation and voting rights have insignificant effects. The study concludes that PenCom regulations significantly affect effectiveness of Pension funds' investments. The study contributes to both policy development and academic discourse on pension governance in emerging markets, especially within Sub-Saharan Africa. The study recommends that regulators should continuously review and improve the design and accessibility of permissible investment instruments. In addition, training programs should be implemented for pension fund managers on evaluating and using complex instrument.

Keywords: PenCom regulation, investment instruments, conflict of interest, investment limits