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Unfortunately, the major reason for the low participation rate in Nigeria is unemployment. You cannot save what you do not have. Generally, pension participation is a function of income and income is dependent on employment. So, it boils down again to the government’s ability to create a conducive environment for job creation, for people to be employed in those jobs and for them to be incentivized enough to save for their retirement.
Looking at Nigeria, there are so many opportunities for the government to create jobs but it does not look like the government sees those opportunities or perhaps, those in power are either selfish or do not know what or how to do it.
With the unemployment rate as high as 35% in Nigeria and employers shamefully engaging in age discrimination in their employment process by requiring that applicants of above certain age limits should not apply for some jobs, it is becoming obvious that retirees may not be adequately taken care of by their children in old age.
As more and more Nigerians come to grips with the fact that gone are the days when retirees depend on their children for meeting their financial needs at retirement, the pension participation rate will likely keep increasing.
Looking at Nigeria, there are so many opportunities for the government to create jobs but it does not look like the government sees those opportunities or perhaps, those in power are either selfish or do not know what or how to do it.
With the unemployment rate as high as 35% in Nigeria and employers shamefully engaging in age discrimination in their employment process by requiring that applicants of above certain age limits should not apply for some jobs, it is becoming obvious that retirees may not be adequately taken care of by their children in old age.
As more and more Nigerians come to grips with the fact that gone are the days when retirees depend on their children for meeting their financial needs at retirement, the pension participation rate will likely keep increasing.