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Pension Law And Practice In Nigeria (A Review of the Pension Reform Act, 2004) by Mbanugo Udenze, Maresha Publishing, Lagos, pp 273.

The book; Pension Law and Practice in Nigeria is an attempt to illuminate our understanding of a very important aspect of the changing social security system in Nigeria. This attempt is anchored on the frame work of the new pension law- The pension Reform Act, 2004, (the PRA).

Written in clear and lucid prose, the book is arranged in chapters that practically mirror the structure of the PRA.
Chapter one, entitled The Pension Reform Act, 2004, is historical in nature. It examines the objectives of PRA and reviews all the laws on pension practice in Nigeria before the pension Reform Act, 2004. Some of the legal instruments examined include the pension Act, 1974, The Trustee Investment Act, 1962, Investment and Securities Act, 1999, the Nigerian Social Insurance Trust Fund Decree (Now Act) 1990, among others.

Besides, it examines the constitutional question of who, between the states and the Federal Government, has the competence to legislate on pension matters in the private sector of the economy. After critically examining relevant sections of the constitution, it concludes that the federal government, through the National Assembly, has the competence of enacting the pension Reform Act , 2004.

In chapter two, the author did a comprehensive review of the changes and modifications, which the PRA has introduced into the pension system. It also documents the shift from wholly Government funded scheme to a contributory scheme which the Chilean government introduced in 1981.
Additionally, this chapter highlights some of the significant features of both public and private sector pension schemes in some parts of the world, as obtained in Europe and America. While highlighting the Chilean experience, this section draws attention to the positive impact a viable pension system could have on the financial markets of any nation.

Chapter three focuses on the employee, his legal nature and place in the scheme. It looks at the efforts of the various government committees and agencies to improve the pension system over time, before the PRA. Efforts are also made here to simplify certain complications that attend the word employee. This is sure to benefit, not only labour law enthusiats, but also workers and employers of labour in general.
Chapter Four looks at the NSITF in relation to the PRA, noting the efforts of those who drafted it to avoid any disruption of the core business of the NSITF pension administration. The book goes on to do a comprehensive review of the National Pension Commission, especially as it relates to special examination embarked upon at the instance of individuals.

Chapter five touches on the service providers by carrying out an in-depth examination of the PFA and PFC, which are the core service providers for purposes of the private management of pension funds. It examines further the licensing requirements and the duties and obligations of the PFA and PFC.
Chapter six deals with the investment of pension funds. Here, the author mirrors the mind of the regulator – the mind of diligent servant intent at avoiding mistakes. This intent is reflected through restrictive investment criteria, for the limits placed on eligible investment and the high standard required for instruments to qualify.

The PFA and PFC are to invest and hold pension funds only in prescribed instruments. These provisions are primarily designed to ensure that the funds are not lost or frittered away by either incompetent fund administrators or bad investment decisions. In the concluding chapter seven, the author examines the offences and penalties provided for in the PRA and the enforcement powers of the National Pension Commission. It also considers the provisions for complaints by aggrieved persons and dispute resolution.

In all, the book examines the PRA not only from the legal perspective but also from the point of view of all stakeholders, whilst also putting into clear perspective the social, political and economic implications of the new law. The book does a thorough examination of the PRA, analyzing knotty issues, probing grey areas and loopholes as well as making necessary suggestions on the way forward.

However, there is room for improvement. Apart from a number of typographical errors certain areas in the book need further clarifications. For instance, chapter five which deals with the operators, should have given further insight into the nature of closed PFAS, and the Pension Transitional Arrangement Department which, the author acknowledges, are critical to the success of the reform. Besides, while the book uses the Reform Act, as a good reference material, but this seems to have taken the place of an index that makes referencing easier.

In all, the book Pension Law and Practice In Nigeria is a valuable piece of work on pension practice in Nigeria.
The author, Mbanugo Udenze, is a legal practitioner and Principal partner in the highly successful law firm of Mbanugo Udenze & Co. He is an associate member of the chartered Institute of Taxation and Equipment Leasing Association of Nigeria.