ABSTRACT

In Nigeria, effort was been made by passed government towards entrenching a social security system. The National provident fund (NPF) in 1961 and its successor, the Nigeria Insurance Trust Fund (NSITF) in 1994 I Victor (2004)1. The NPF scheme was established in 1961 to initially cover all employees until the pensions ACT Was introduced to provide retirement of public servants. The NPF scheme operated as a contributor scheme be native more than 30 years hen the Act was repeated in I 992 in view of its immodest benefits and ineffective coverage. The scheme collected nI' N .00 for joint contribution per month tor Ci1ll)IOVCC which adds up to N96.U0 per employee or an aggregate sum of N2J0.0() per employees for the 30 'ears that the scheme lasted. This pitiable amount of contribution collected b' the scheme plus interest income (at 7% per annum) was payable to membei-s as benefit. All endeavours to revise the rate of the contribution to ensure modest benefits are paid. came to naught until the scheme sunblind hum the acute disrepute leading to the eventual repel of the Act in 1992 and its substitution with defined benefit social insurance scheme in the form of the NSITF. hose operation was understudied to accomplish the objectives of this study. By and large. the NSITF scheme which is limited both in bennet and in Coverage. the public service pension schemes which covers only the public servants, and a few occupational scheme established by employees in the private sector are the only visible evidence of socma1 security in the country, which Nigeria in the category of countries where social security coverage is limited to only 10% of the labour force according to I Victor (20( Ji ) J.