Determinants Of Financial Performance Of Pension Fund Administrators In Nigeria

Abstract

This study examines financial performance of pension fund administrators (PFAs) in Nigeria. Financial Performance refers to the degree to which financial objectives has been accomplished. It is the process of measuring the results of a firm’s policies and operations in monetary terms. There are various measures of financial performance. For instance, return on sales reveals how much a company earns in relation to its sales, return on assets explain a firm’s ability to make use of its assets and return on equity reveals what return investors take for their investments. Therefore, the study consider fund expenditure and fund size as the determinants of financial performance of pension fund administrators as examined previously by other scholars. Additionally, the study investigates performance variation among the different fund classes under Nigeria’s multi-fund structure. The study employs panel data from 20 PFAs over a six-year period (2018–2023). The findings revealed that there are significant differences in performance between the classes of funds. Empirical evidence revealed that Fund II is the best performing fund, Fund IV is the second best performing fund, Fund III is the third performing fund, Lastly, Fund I is the low performing fund. Furthermore, The findings about the determinants indicates that fund expenses significantly influence the financial performance of funds, while fund size have no significant impact on the financial performance of pension fund administrators in Nigeria.