Effect of Pension Investment on Financial Access in Nigeria
Effect of Pension Investment on Financial Access in Nigeria

Summary/Abstract: This study investigated how pension investments affect financial access in Nigeria. Ex-post facto research design was employed, analyzing data spanning the years, 2007 to 2020. The study collected data from various sources including the World Bank Database's World Development Indicator (WDI), the Central Bank of Nigeria (CBN) statistical bulletin, and the Pension Commission. The Autoregressive Distributed Lag (ARDL) testing technique was utilized to explore both short and long-term relationships among the variables, using Eviews 12 software. The findings from the long-term model reveal a positive relationship between, FGN securities, pension investments in equities, mutual funds, and financial access. This suggests that increases in these types of pension investments would likely lead to an expansion of financial access in Nigeria. Conversely, the research uncovered a detrimental link between pension investments in nearby money market securities and financial accessibility. In contrast, upon short-term examination, mutual funds and pension investments in FGN securities exhibited a favorable correlation with financial accessibility, while investments in equities and nearby money market securities displayed an adverse association with financial accessibility. This study, however, suggests the ease of access to financial services which includes deposit, saving, payment, insurance, and other risk management services for both the unbanked and underbanked categories will promote the significant impact of pension investment, therefore, improving public credit guarantee schemes for investment.

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