Articles | 2026-02-28

Improving Pension Fund Administrators’ Revenue through Efficient Pension Contribution Management

Samuel O. Ewuru, Gilbert Ogechukwu Nworie
Quantitative Economics and Management Studies, Vol. 7 No. 1 (2026) https://doi.org/10.35877/454RI.qems4170 Published: 2026-02-28
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Abstract

The growing volume of unreconciled pension contributions is a concern not only for Pension Fund Administrators (PFAs), who manage these funds, but also for the regulator—the National Pension Commission. The continued existence of unmatched funds undermines the goal of ensuring prompt pension payments to retirees. In addition to lost revenue for PFAs, contributors whose funds are held in the Contribution Reconciliation Account (CRA) experience reduced returns on investment. Thus, this study examined the impact of unreconciled funds on the revenue of PFAs, as they are not permitted to charge management fees on these funds. The study employed an Ex Post Facto research design, as the data were collected after the events had occurred and could not be manipulated (Nworie & Orji-Okafor, 2024). The target population consisted of 19 Pension Fund Administrators (PFAs) in Nigeria, but data from 17 were used due to availability constraints. Covering a six-year period from 2018 to 2023, the analysis used multiple regression in Microsoft Excel to assess the impact of four independent variables—Fund Under Management (FUM), Annual Contributions (CON), Number of Retirement Savings Accounts (RSA), and Contribution Reconciliation Account balances (CRA)—on the dependent variable, Revenue (REV). The findings indicate that CRA balances have a significant negative effect on PFA revenue, evidenced by a negative coefficient and a p-value of 0.01. We recommend that PFAs leverage information technology to identify the owners of these funds, working in collaboration with employers to reduce the volume of unreconciled contributions. Additionally, PFAs should adopt a uniform naming convention for unreconciled funds in their balance sheets to enhance clarity. Lastly, Section 11(6) of the Pension Reform Act (PRA) 2014 should be amended to include penalties for employers who submit contribution schedules with incorrect or incomplete information.

Keywords

Pension Fund AdministratorsContribution Reconciliation AccountTransitional Contribution FundRevenue, National Pension Commission

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How to Cite

Ewuru, S., & Nworie, G. (2026). Improving Pension Fund Administrators’ Revenue through Efficient Pension Contribution Management. Quantitative Economics and Management Studies, 7(1). https://doi.org/10.35877/454RI.qems4170

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