Effect of Risk Management and Internal Controls on Pension Management in Nigeria

Abstract

This study examines the effect of risk management and internal controls on pension management in Nigeria. A Survey research design was adopted. Primary data were sourced by administered questionnaire to 98 respondents out of a total population of 130 comprising permanent staff of the nine chosen PFAs and nine PFCs. Data obtained were analysed using the Linear Regression technique. Findings showed that both internal control and risk management have a significant positive effect on pension administration management in Nigeria, hence providing adequate commendable growth and safety of pension assets. This is supported with coefficient and probity values of (β1 = 0.4916845, t = 8.02; P < 0.05) and (β1 = 0.6311685, t =9.90; P < 0.05). The study concluded that effective internal control and risk management are catalyst to pension management in Nigeria. The study, therefore, recommended that pension fund administrators in Nigeria should employ robust effective and efficient internal control and risk management in support of practice as these have influence on financial performance in one way or another.