OGONDA, Gift Orokwele
Department of Accountancy
Faculty of Management Sciences
Rivers State University, Port Harcourt
OKIAKPE, Ebikefe Kenneth
Department of Accounting
Faculty of Management Sciences,
Niger Delta University, Wilberforce Island, Amassoma, Bayelsa State

This study examined the link between pension fund investment and Nigeria’s economic
development. The study used investments in money market instruments, federal government
securities, quoted ordinary shares, and corporate loan instruments as indicators of pension fund
in Nigeria; while human development index (HDI) was used to represented economic
development. National Pension Commission, World Bank, and National Bureau of Statistics
secondary time series data from 2004 to 2020 were used and analyzed using descriptive
statistics, correlation, and Fixed/Random Effects Regression Model. The study found that
pension fund investments in money market instruments had a negative and insignificant
influence on HDI, while pension fund investment in federal government securities had a positive
and insignificant effect on HDI. Pension fund investment in quoted ordinary shares and corporate
debt securities have positive influence on Nigeria’s economic development in terms of the HDI. The study concludes that pension fund investment influence economic development in terms of
HDI and recommends that, for improved economic development in terms of HDI, pension funds
should be invested more in ordinary shares and corporate debt securities; and that pension fund
investment in money market instruments should be discouraged while investment of pension
funds in federal government securities should be done with caution.
Keywords: Pension fund investments, federal government security, quoted ordinary shares,
corporate debt instruments.

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