Potentials of an Islamic pension fund administration scheme in Nigeria

Abstract

This study explores the potential of an Islamic Pension Fund Administration Scheme in Nigeria by determining public perceptions about the scheme. A qualitative approach was used to carry out the study in the year 2020 using a Questionnaire with-open ended questions for gathering qualitative data through face to face interviews. A sample of thirty responses was used for thematic analysis. Analysis revealed Nigerians had a positive perception and are willing to participate in an Islamic pension scheme when it becomes available. A recommendation for further research was suggested. The study did not focus on Takaful which is an Islamic insurance product that will replace payment of annuities in Islamic pension funds, and the geographic scope was limited to the Federal Capital Territory. Islamic Pension Fund Administration scheme is a product not available in the Nigerian financial system. The conventional Pension Scheme is bedevilled with many problems; all investments carried out by the pension fund administrators are not screened in any way for shariah compliance. This study explores the potentials of solving these issues.