AN ASSESSMENT OF NIGERIA PENSION REFORM AS A CATALYST TO POVERTY REDUCTION

This study critically examines the Nigerian Pension Reform Act of 2004 in relation to its effectiveness in reducing poverty among pensioners in the Kwara State Ministry of Women Affairs, Ilorin. The research explores why the reform has failed to achieve its intended goals of efficiency and improved welfare for retirees within the public sector. Specifically, the study investigates the extent to which the implementation of the reform has enhanced pensioners' welfare, evaluates the adequacy of the institutional framework supporting the reform, and recommends viable techniques for more effective implementation at the state level. Using both qualitative and quantitative research methods, data were collected from staff and pensioners within the ministry. Findings reveal that despite the theoretical strengths of the contributory pension scheme, its practical application has been fraught with inefficiencies, poor institutional support, corruption, and lack of accountability. These challenges have hindered the reform’s impact on poverty alleviation among pensioners. The study concludes that the pension system in Nigeria is still plagued by systemic issues such as negative work ethics, weak enforcement mechanisms, and poor record-keeping. Consequently, pensioners continue to face financial hardships post-retirement. Recommendations include stricter enforcement of pension laws, improved transparency, regular pre-retirement education for workers, a diversified pension model as suggested by the World Bank, and a call for ethical reform within public institutions. The study emphasizes the urgent need for a comprehensive overhaul of the pension system to better secure the welfare of Nigerian retirees.