ISSA 5th International Research Conference on Social Security

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ISSA 5th International Research Conference on
Social Security

• Pension reform in Nigeria
• how not to learn from others
• Bernard H Casey
• Cass Business School
• and
• Jörg Michael Dostal
• Brunel Business School

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Pension reform in Nigeriahow not to learn from
others

• Outline
• Policy learning
• The new Nigerian system
• Assessing the system
• Governance issues
• A possible alternative for Nigeria
• Conclusions and recommendations

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Pension reform in Nigeriahow not to learn from
others

• Policy learning
• Learning and pension reform
• Chiles 1981 reform
• Nigerias Vision 2010 programme
• Comparing Chile and Nigeria
• Role of international organisations
• IMF, World Bank and ILO

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Comparison of Chile prior to 1981 reform and
Nigeria prior to 2004 reform
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Pension reform in Nigeriahow not to learn from
others

• The new Nigerian system
• Reasons for reform
• Characteristics of old system (NSITF)
• Problems of arrears and cost control
• How new system works
• Coverage
• Contribution rates
• Replacement rates
• PFAs and NSITF as legacy
• PenCom the regulator

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Pension reform in Nigeriahow not to learn from
others

• Assessing the system
• Costs
• Charges
• Transition costs
• Contribution to economic development
• Capital markets
• Federal government bonds

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Pension reform in Nigeriahow not to learn from
others

• Governance issues
• Corruption
• Lack of rule of law
• Low regulatory quality
• Presidential prerogative
• PenCom, Transcorp and the Nigerian Stock Exchange

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Pension reform in Nigeriahow not to learn from
others

• A possible alternative for Nigeria
• Social pensions
• ILO and World Bank perspectives
• Poverty alleviation
• Proposed reforms in Chile
• Failure of the 1981 system
• Suitability for Nigeria
• Administrative capacity
• Promoting legitimacy

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Pension reform in Nigeriahow not to learn from
others

• Conclusions and recommendations
• Recognise mistakes
• Dont copy failure
• Learn, dont mimic