Pension and related issues had received significant attention over the recent past with the aim of solving the myriad of challenges bedevilling the retirement benefit system in Nigeria.  The public sector scheme became unsustainable due to lack of adequate and timely budgetary provisions and increases in salaries and pensions.

There were demographic shifts due to rising life expectancies, which was a phenomenon that affected the family support ratio. In addition, Pension Administration had been largely weak, inefficient, less transparent and cumbersome.

The private sector schemes, which were largely akin to the Provident Fund Schemes, had been characterised by very low coverage and compliance ratio due to lack of effective regulation and supervision.  This resulted in complete paradigm shift from the Defined Benefits Schemes as operated by both the public and private sectors to the Contributory Pension Scheme.

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