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Administration of pension funds under Nigerian new contributory pension scheme: A review under Islamic Law
(Faculty of Law, Kwara State University, Malete., 2022-12-31) Onikosi Ahmeed Adedeji; Adekunle A . Aminu; Ahmed A. Muhammed-Mikaaeel
Search for financial security after active service years of employees in Nigeria gave birth to pension scheme regimes in Nigeria. The focus point of the new pension scheme is security of funds and reasonable investment for profitability. Lots of Muslim subscribers have been complaining against the present administration regime of their pension funds. Hence, this paper examines the administration of funds under the new contributory pension scheme from Islamic law perspective. The paper adopts doctrinal method of legal research. It was discovered that Shari’ah is very much interested in what happens to Muslim funds inclusive of the pension funds. The paper discovered further that the administration of pension funds in Nigeria is marred with gharar, riba and maisir and thus violates Shari’ah tenet. The paper discovered also that the present structure of pension scheme in Nigeria which lacks Shari’ah Advisory Board has been responsible for the continuous violation of Shari’ah tenet in the administration of pension funds. The paper thus principally recommends amendment of the extant pension regime to pave way for Shari’ah Advisory Board to guide on administration of pension funds.