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CHAPTER ONE

INTRODUCTION
1.1 Background of the Study
The issue of retirement and death benefits has received much attention in many countries
over the past decades. In fact, in recent times, retirement fund has increasingly attracted the
attention of policy makers in many countries as a means of facilitating privately funded
retirement income savings by an ageing workforce (World Bank, 2013). Many countries have
opted for various forms of contributory retirement fund scheme where employers and their
employees are supposed to pay a certain percentage of the employees monthly earnings to a
retirement savings accounts from which they would be drawing their retirement benefits after
retirement or death benefits after death (Robolino, 2011). According to Klumpes and Mason
(2012), besides retirement benefit funds are now among the most important institutional
investment in the world capital markets.
Retirement benefit is a monthly payment made to an employee after he/she has retired
from service. On the other hand, death benefit is a payment in form of compensation paid to an
eligible dependant(s) of a police officer that died while in service. Retirement fund is one
indispensable form of employees solid benefits which has positive impact on employee
discipline, loyalty and willingness to remain in the service of an employer, commitment to the
attainment of job goals and concern for the survival of the organization. An occupational
retirement fund scheme is an arrangement under which an employer provides retirement fund for
employees when they retire or gives deferred benefits to members who leave. It is a system
designed to provide the employees of an organization with a means of securing on retirement a
standard of living reasonably consistent with that which they enjoyed while in service.

A greater importance has been given to retirement and death benefits by government
ministries, departments, parastatals and agencies such like the Nigerian Police Force because of
the belief that if employees future needs are guaranteed, their fears ameliorated and properly
taken care of, they will be more motivated to contribute positively to organizations output
(Adebayo, 2010). However, over the years the management of retirement and death benefits in
these government owned establishments in Nigeria has been faced with several problems. For
example, over the years, the management of the Nigerian Police Force has been faced with
multiple and diverse problems such as delays in releasing retirements benefit, wrong
computations of retirement benefits etc. Also, efforts by the government and other relevant
stakeholders to curtail the problems have been futile.
These problems faced by the Nigerian Police Force are assumed to be linked to the
various sharp practices perpetuated by officers of the Nigerian Police Force and other relevant
stakeholders. Thus, it becomes then imperative to examine these sharp practices in the
administration of retirement and death benefits in the Nigerian Police Force.
1.2

Statement of Problem
Retirement and death benefits and related issues have received significant attention in

many countries over the past decades. There are new changes in the way retirement funds or
assets are managed and benefits are distributed to beneficiaries due to the difficulties associated
with the retirement fund schemes previously in existence.
Despite the fact that retirement benefit provides benefits which can be regarded as
compensation to an employee for the services rendered to the organization, the expectation and
actual experiences of many retirees in the Nigerian Police Force falls short.

Also, over the years, the management of retirement and death benefits in Nigerian Police
Force has been faced by multiple and diverse problems such as inadequate funding, inadequate
subventions and grants, poor documentation and filing in offices, direct release of retirement and
death benefits funds to underwriters, accumulated arrears of retirement and death benefits, lack
of accountability, corruption and embezzlement of retirement and death benefits funds. Others
include cumbersome clearance procedures, incompetence and inexperience of officers in charged
with the responsibility of processing police officers retirement and death benefits added to poor
human relations, lack of etiquette and simple courtesy. This situation often affects police
employee loyalty and commitment to the force negatively.
Many nations of the world in Europe, America and other developed and developing
nations have been faced with the problem of managing their retired workers as well as payment
of their entitlements as they disengage from work. For many developed nations and many
multinational corporations, the problem of payment of retirement benefits to their retired workers
is not a herculian task since many decades ago, they adopted an effective administrative system
which applies to workers in both the private or public service. The problem is more pronounced
in developing nations like Nigeria, most especially in the Nigerian Police Force, where the
government had to bear the brunt of payments of retirement and death benefits with little or no
contribution made by the police officer.
Initially, the governments were able to do it during periods of economic boom and when
police officers retirees were fewer in Nigeria. It became an uphill task when the number of police
retirees began to increase astronomically, and was compounded by global economic recessions.
Nigeria is one of the nations that its retired police officers had to face a lot of problems due to the
fact that the government could no longer manage and administer effectively the retirement
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benefits of workers in the police force who were untimely retired, due to the death or, retrenched
due to downsizing and closure of some government institutions and departments or even normal
disengagement from service.
Nevertheless, the Nigerian Police Force in a bid to create a sound, good and workable
retirement fund scheme, there have been several reviews of retirement fund schemes by the force
and this has also caused implementation problems. Other researchers (Adams, 2005; Adebayo,
2010; Sterns, 2006) have studied retirement and death benefits in the light of its administration,
but little or no work have looked at the sharp practices in the administration of retirement and
death benefit in the Nigerian Police Force. Hence, this study is motivated in this light.
In examining the sharp practise in the administration of retirement and death benefits in the
Nigerian Police Force, the study will provide answers to the following research questions:
i.)

What are the types of retirement and death benefits administered in the Nigerian Police

ii.)

Force?
Are there sharp practices in the administration of retirement and death benefits in the

iii.)

Nigerian Police Force?


What are the factors responsible for sharp practices in the administration of retirement and

iv.)

death benefits in the Nigerian Police Force?


What is the effect of sharp practices in the administration of retirement and death benefits

v.)

on Police Officers motivation and commitment levels?


What are the ways in which sharp practices in the administration of retirement and death
benefits in the Nigerian Police Force can be curtailed?

1.3

Objectives of the Study

The general objective of this study is to examine the sharp practices in the administration
of retirement and death benefits in the Nigerian Police Force. Other specific objectives are:
i.

To identify the types of retirement and death benefits administered in the Nigerian

ii.

Police Force.
To ascertain if there are sharp practices in the administration of retirement and death

iii.

benefits in the Nigerian Police Force.


To ascertain the factors responsible for sharp practices in the administration of

iv.

retirement and death benefits in the Nigerian Police Force.


To ascertain the effect of sharp practices in the administration of retirement and death

v.

benefits on Police Officers motivation and commitment levels.


To suggest ways in which sharp practices in the administration of retirement and
death benefits in the Nigerian Police Force can be curtailed.

1.4

Research Hypotheses
The research hypotheses are given below:

Hypothesis One
Ho: There are no sharp practices currently in the administration of retirement and death benefits
in the Nigerian Police Force.
Hypothesis Two
Ho: Lack of a comprehensive accounting standard is not the only factor responsible for the sharp
practices in the administration of retirement and death benefits in the Nigerian Police Force, but
other factors.

Hypothesis Three
Ho: Sharp practices in the administration of retirement and death benefits in the Nigerian Police
Force does not have negative effect on Police Officers motivation and commitment levels.

1.5

Scope of the Study


The study focused mainly on the sharp practices in the administration of retirement and

death benefits in the Nigerian Police Force. However, due to time and cost constrains, the study
was restricted to the Nigerian Police Force Headquarters in Benin City, Edo State, Nigeria.
1.6

Significance of the Study


The study is relevant in the following ways:
First, the findings obtained in the study can serve used as an effective tool for policy

makers on retirement and death benefits with respect to the Nigerian Police Force and as well as
improve the management of the retirement and death benefits by designing strategies that will
curtail the various challenges and problems associated with the Nigerian Police Force as regard
its retirement and death benefits administration.
Furthermore, the study would assist authorities of the Nigerian Police Force and
managers of the retirement and death benefits in understanding the essence, significance and
importance of their role in ensuring that they abide by the rules and policies of retirement and
death benefits in order to ensure their efficient and effective administration, thereby creating a
balance between employee retirement expectation and their actual retirement experiences.
Finally, it would add to the existing body of knowledge on the subject and the interesting
findings may serve as input for or raise issues for further research on retirement and death
benefits administration or other related topics.

1.7

Conceptual Clarification

Some of the key concepts in this study are clarified below:

Sharp Practices - Sharp practice is a negative phrase to describe mean or cunning behaviour of
some police officers or officers saddled with the responsibility of managing retirement and death
benefits of police officers in Nigeria, that is technically within the rules of the law but borders on
being unethical.
Administration: the act of administering something such as medicine, oath, or retirement
benefits as related to this study.
Retirement Benefit - Retirement benefit is a monthly payment made to a police officer after he
is retired from service.
Death Benefit Death benefit is a payment in form of compensation paid to an eligible
dependant(s) of a police officer that died while in service.
Nigerian Police Force - The Nigerian Police (NPF) is the principal law enforcement agency in
Nigeria.

CHAPTER TWO
LITERATURE REVIEW
2.0

Literature Review

2.1

Introduction
This chapter presents a review of the literature on administration of retirement and death

benefits in Nigeria. Special attention is paid to the concept of retirement benefits and death
benefits; the problems associated with the administration of retirement benefits and death
benefits in Nigeria and the way forward.
2.2

The Concept of Retirement Benefit


Retirement benefit is simply the amount set aside either by an employer or an employee

or both to ensure that at retirement, there is something for employees to fall back on as income. It
ensures that at old age workers will not be stranded financially. It is aimed at providing workers
with security by building up plans that are capable of providing guaranteed income to them when
they retire or to their dependants when death occurs.
A retirement benefit is a contract for a fixed sum to be paid regularly to a pensioner,
typically following retirement from service. It is different from severance pay because the former
is paid in regular instalments while the latter is paid in one lump sum.
A retirement benefit plan created by an employer for the benefit of employees is
commonly referred to as an occupational or employer pension. Labour unions, the government
and other organizations also fund retirement benefits. Occupational retirement benefits are a
form of deferred compensation, usually advantageous to employee and employer for tax reasons.
Many retirement benefit plan also contain an additional insurance aspect, since they often will
pay benefits to survivors or disabled beneficiaries. The common use of the term retirement

benefit is to describe the payments a person receives upon retirement, usually under predetermined legal and/or contractual terms.
According to Adams (2005), retirement benefits is the amount paid by government or
company to an employee after working for some specific period of time, considered too old or ill
to work or have reached the statutory age of retirement. It is equally seen as the monthly sum
paid to a retired officer until death because the officer has worked with the organization paying
the sum.
Adebayo (2010) asserted that retirement benefit is also the method whereby a person
pays into retirement benefit scheme a proportion of his/her earnings during his working life. The
contributions provide an income on retirement that is treated as earned income. This is taxed at
the investors marginal rate of income tax. On the other hand, gratuity is a lump sum of money
payable to a retiring officer who has served for a minimum period of time.
Robolino (2011) notes that many countries have opted for different forms of contributory
retirement fund schemes, in which employees and their employers are expected to pay certain
percentages of their monthly earnings to a Retirement Savings Account (RSA) from which they
would be drawing their retirement benefits after retirement. Retirement fund reflects money
withheld during the period of employment and returned with interest to an employee after
cessation of work, that is, at retirement. A retirement scheme is a way of providing an employee
with either a lump sum of money when leaving the service of an employer or providing a
retirement fund to the employee.
The reason for the retirement benefit scheme stems from the fact that first an organization
has a moral obligation to provide a reasonable degree of social security for workers especially
those who have served for a long period. Second the organization has to demonstrate that it has

the interest of its employees at heart through the retirement benefit schemes. The most popular
way to determine the amount of an employees retirement benefit is to base payment upon a
percentage of the employees earnings computed at an average over several years multiplied by
the number of years the employee has served the company.
A greater importance has been given to retirement benefit and gratuity by employers
because of the belief that if employees future needs are guaranteed, their fears ameliorated and
properly taken care of, they will be more motivated to contribute positively to organizations
output.
Retirement benefit is a tool used to manage employment. It can be applied in an
organization to attain and retain certain levels of labour productivity. Armstrong (2010) affirms
that retirement benefit helps employees to readjust themselves properly into the society after
leaving employment. It constitutes an important tool in the hands of management for boosting
employee morale which may lead to efficiency and increased productivity of employees in
particular and the organization as a whole. Besides retirement benefit is a device which
employers use to meet their social responsibilities and thereby attract goodwill.
Furthermore, retirement benefit now plays an increasingly important role in the economy
of any country because the money earmarked for retirement could be used for the establishment
of small enterprises. It can also relieve pressure on the company for individual assistance by
instilling in employees a sense of confidence at challenging responsibilities for their future.
Sterns (2006) observes that retirement benefits could discourage labour turnover. If both
the employees and employers contribute to the scheme, then it serves as a general area of joint
interest and cooperation and therefore helps to foster better employment relations. However,
employer and employee relationship in the provision of pension as a form of employee benefits

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is often affected by factors including: pensionable and gratuity age; the amount or the percentage
of the proposed retirement benefit; method of financing; administration of retirement benefit and
psychological pressure.
Furthermore, various government organizations as well as labour unions have
emphasized the need for sound, good and workable retirement benefit scheme. In the words of
Sule and Ezugwu (2009), a good retirement benefit guarantees employees comfort and
commitment to the organization during his/her active years.
According to Ozor (2011), retirement benefit consists of lump sum payment paid to an
employee upon his disengagement from active service. According to him, payment is usually in
monthly instalments. He further stated that the retirement benefit plans may be contributory or
non-contributory; fixed or variable benefits; group or individual; insured or trustee; private or
public, and single or multi-employer.
Balogun (2006:7) observes that retirement benefit schemes exist to provide post
retirement benefits to employees. He further added that the primary goals of a retirement benefit
system should be to provide adequate, affordable, sustainable and robust retirement income,
while seeking to implement welfare improving schemes an adequate system seeks to provide
sufficient benefits to prevent old age poverty, smoothen a reliable means to lifetime standards
and acceptable lifestyle.
The article added that an affordable system is that which is within the financing
capability of employees and does not unduly displace other social and economic imperatives. A
sustainable system is the one that is financially sound, funded and maintained over a foreseeable
horizon under a broad set of reasonable assumptions (Balogun, 2006: 8).

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2.3

The Concept of Death Benefit


Death benefits are paid to an eligible dependant of an employee that dies in active

service. The benefits vary according to the rules of the retirement and death benefit scheme the
employee belongs to and whether the person that died was still contributing to the scheme, had
left the scheme or was a retiree (Fapohunda, 2013).
Death can occur in service or as well as death during retirement. Here Retirement Act
provides that where a contributor dies during employment, the balance on his RSA will be
transferred to his known beneficiary named in the will, which is his or her spouse, children, next
of kin or the administrator of his estate as determined by the pension. The same provision also
applies to retirees who have started receiving retirement benefits through programmed
withdrawal.
Garba and Mamman (2014) asserted that sometimes who gets what death benefit is
automatic and further added that the retirement and death benefit scheme trustees usually have
discretion to decide who receives any lump sum payment. This is because lump sum death
benefits paid in this way are not part of your estate for inheritance tax purposes. In most cases,
the employee that died would have signed a death benefit nomination or expression of wishes
form.
Ali (2014) stressed that trustees are not obliged to follow the instructions on an
expression of wishes form, but do need to take them into account. Many employees are entitled
to a death in service benefit from their employer. The figure can vary considerably from a very
small sum to over ten times an employees annual salary. The benefit is usually linked to the staff
pension scheme and will be free of inheritance tax based on certain conditions.

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Death in service benefits are unusual in that that they are paid outside of a will or the
intestacy process, i.e. they do not form part of the deceaseds estate. On the downside, this
means that dependents, and the courts, have no means to intervene if there is a dispute about who
receives the payment. As these benefits are usually part of a retirement fund scheme, trustees will
normally have discretion about who to pay, but they are usually very reluctant to go against the
employees previous nomination (Ali, 2014).
2.4

Types of Retirements in Nigeria

Retirement is the withdrawal or giving up office or work. According to Nwajagu (2007), a


person who is retired is one who has given up office. Ugwu (2006) defined retirement as the act
of stopping ones regular work especially because one has reached a particular age; the even of
retiring or state of having retired from work.
It is the withdrawal from active function of ones may retire means of livelihood. Nwajagu
(2007) defined three ways of civil or public servant may retire or give up his office. They are
voluntary retirement; statutory retirement and Compulsory retirement. By statue on attaining the
age of sixty years chronologically one is bound to retire or on completing thirty-five years in the
service one is similarly qualified to retire from the service. Statutory retirement attracts payment
of gratuity and pension. Voluntary retirement is self-imposed. In other words, a person may
consider by himself whether to retire or to remain in the service and make it his life carrier.
Prospects in the service are considered and where one is not satisfied with the career or one lacks
job satisfaction such person is at liberty to retire voluntarily. The sang in voluntary retirement is
that where the retires has not worked for a minimum of ten years, he forfeits his gratuity and
pension but if he has put in fifteen years in the service, he becomes entitled to payment of
gratuity and pension.

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Olayiwola (2011) summarized and categorized the types of pension systems (retirement benefit)
in Nigeria, prior to the Pension Reform Act 2004 into four, namely:

The fully Unfunded Defined Benefit (DB) Scheme, in the civil service

The Defined Contributory (DC), scheme for employees in the organized private sector,
administered by the NSITF

The Self-Administered Scheme in government parastatals and the private sector, and

The Insured Scheme by individuals administered by pension Fund management or


Insurance companies

2.5 Sharp practices in administration of retirement and death benefits in the Nigerian
Police Force
In the Nigerian Police force, there have been numerous corruptible practices in the payment
of gratuities, pensions or retirement and death benefits such as falsification of age, delays in
payment, long distant travels to receive payments, ghost workers, embezzlement of funds,
mismanagement and diversion of funds (The Post Express June, 2000). These exploitative evils
are purely administrative. It was until some retirees who were also pensioners cried out aloud in
the streets and through the mass media for a positive change (Obi, 2002: 91-100) that the
Pension Reform Act of 2004 was enacted. Although, it was enacted on 25th June, 2004, it only
became effective on 1st July, 2004 to redress corruptible practices in the scheme. The Pension
Reform Act of 2004 established a defined contributory scheme as against the defined benefit
scheme it succeeded. However, some factors have affected the administration of retirement
benefits in the Nigerian Police force.

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2.6 Factors influencing sharp practices in the administration of retirement benefits in the
Nigerian police force
According to Obi (2002) retirement benefits are one of the common benefits payable to an
officer having been in pensionable office. It is a steady income given to a person usually after
retirement. However, a variety of factors affect the benefits that covered workers.
There have not been much literature directed to the corrupt practices in the Nigerian Police force
in respect of retirement and death benefits. However, according to this study, in the Nigerian
Police force, the main factors which affect the administration of public pension scheme are:
1. The national economy
2. Decentralizing the processing of pension claims
3. Corruption and inefficiency in the pension department
2.7 The effect of sharp practices in the administration of retirement and death benefits on
police officers motivation and commitment level
Retirement and death benefits are two important factors in the public sector. When withheld, it
has a negative impact on the motivation and commitment of other public officers. Sharp practices
in the administration of retirement and death benefits, which have been influenced by the
national economy, corruption, inefficiency and other factors, have been shown to have a negative
effect on police officers motivation and commitment level (Obi, 2002). It reduces the quality of
the service delivered by the police officers, thereby making them relent in going an extra mile in
carrying out their duties. It also reduces the job motivation and commitment level of the officers.
Sharp practices in the administration of retirement and death benefits also reduces the job
satisfaction of police officers. This, in turn, makes them to look outside for other better
alternative jobs.
2.8

Problems with Retirement Benefit Administration in Nigeria


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The issues of retirement and death benefit in Nigeria are sources of major concern to
government and retired persons in Nigeria.
Balogun (2006:8) observed that in the last two and a half decades, most retirement
benefit schemes in the public sector had been poorly funded or unfunded, owing to inadequate
budget allocations and budget releases which seldom came on schedules and were far short of
due benefits. This situation had resulted into unprecedented and unsustainable outstanding
pension deficits.(2006:10), has further resulted in the following:

Delays in releasing retirement benefits to police officers upon retirements and death benefits

to eligible dependants upon the death of officers while in active service.


Wrong computations of retirement and death benefits
Deliberate hold back of retirement and death benefits for flimsy excuses, thereby causing
untold suffering to the retired police officers or dependants of police officers that died while

in active service.
Some officials corruptly enrich themselves with retirement and death benefits funds by
falsifying and adding non-existing names to beneficiary list, thereby swelling up the cost of

funding retirement and death benefits.


Forcing retired police officers and eligible dependants of police officers that died in active
service to queue up endlessly under rain and sun just for the payment of retirement and death

benefits.
Inability to identify better methods, procedures, ways and means of accounting for retired
police officers and caring for their welfare is a source of concern.
Similar to Balagouns views, Akinyemi (2012:44) identified some of the following sharp

practices as hindrances to effective retirement benefit scheme in Nigeria:

Restrictive and sharp practice in the investment and management of pension funds.
Process of documentation, application and registration became very cumbrous that
computation officers and clerks cashed on and were looting the system dry and blue.
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Delays in release of funds to pension further compounded the predicament of the pensioners
and retirees.
Bogomolova (2005) and Robbins (2009) were of the view that some of these sharp

practices are very low and sometimes an outright non compliance ratio due to lack of effective
regulation and supervision of the retirement and death benefit scheme in Nigeria.
Dalang (2006:30) observes that retirement benefit has become a topical issue, one that
has engaged the commitment of government, attention of employers and employees not only in
Nigeria but in many emerging and developing economies of Africa, Asia, and Latin America. It
is the spirit of improving the economic wellbeing of retirees in their post-retirement lifestyle that
the Federal government of Nigeria carried out a general overhaul of the defined benefit hinged
on Pay As You Go (PAYG) policy in 2004.
Fapohunda (2013) revealed recently the multi-million pension fund scandals pervading
many strata of the Nigerian society like the Pension unit of the Office of the Head of Civil
Service of the Federation, PENCOM and the Nigerian Police Pensions. A recent National
Assembly public hearing on pension revealed that six civil servants stole N24 billion from the
Police Pension Funds. The same persons were alleged accomplices in the illegal diversion of
another N24 billion from the Police Pension Funds. Similarly, N151 billion and another N32.8
billion and another 6 million pounds were recovered after the conduct of Biometric Data Capture
exercise on pensioners since 2010 (Fapohunda, 2013).
Iwara (2012) opined that, the design of a retirement benefit system must clearly recognize
that retirement benefits are claims against future economic output. To fulfil this primary goal, he
argued that the retirement benefit systems be reformed in such a way that it must supports
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growth, development, diminishes possible distortions in a capital and labour markets and
ultimately contribute to economic output.
2.9

Improving the Administration of Retirement and Death Benefits in the Nigerian


Police Force
Considering the challenges inherent in the administration of retirement and death benefits

in the Nigerian Police Force, several authors have suggested possible alternatives to curtailing
the problem.
Holzmann and Hinz (2005) and Palacios and Sluchynsky (2006) have suggested social
retirement fund system which involves cash transfer to old people with eligibility based on
residence and financing not from contributions but general tax revenues. According to the
authors, the

contribution of social retirement fund scheme to relieving poverty in developing

countries has been long advocated by the International Labour Organization (ILO) and more
recently, the World Bank. They further added that social retirement fund scheme have been
credited with positive developments in those countries that have introduced them.
In collaboration to the foregoing, Johnson and Williamson (2006) noted that social
retirement fund scheme have contributed to improving workers health, fighting rural poverty,
heightening the status of older people in the family and increasing school enrolment.
However, Fapohunda (2013) argued that social retirement fund scheme may not be
without disadvantages. He posited that in a traditional settings like Nigeria, it tend to weakens
traditional systems of informal family care for the elderly. He further added that it relies on the

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same revenue base as the old, unfunded, pension scheme consequently there is instability of the
revenue source, and thus the likelihood of payments falling into arrears, would remain.
Thus, in view of the short comings of the social retirement fund scheme, Fapohunda
(2013) suggested the following:
i.)

A comprehensive accounting standard for retirement benefits must be put in place to

ii.)

adequately protect retirement and death benefit funds.


Government must provide a relatively safe and less volatile area in the Nigerian
economy where the funds can be invested with commensurate returns assured to the

iii.)

beneficiaries.
There is need for continuous regulation and strengthening of the institutional structure

iv.)

of the retirement and death benefit scheme.


Managers of the retirement and death benefit scheme must ensure an enabling
environment for smooth implementation of the retirement and death benefit scheme
and put in place effective monitoring of all players backed by adequate sanctions for

v.)

erring operators.
To ensure transparency and prompt payment there must be prompt reconciliation and

vi.)

statements of account given to members of PFAs regularly.


Retirement fund investments needs to be carefully monitored and investment

vii.)

instruments where they can be invested must be rated to ensure asset quality.
There is need for viable investment of retirement fund to ensure prompt and regular

viii.)

payment of entitlements of retirees.


Numerous scandals that have trailed the retirement fund scheme, in recent times
implying that greater need for effective management of the retirement fund scheme.

ix.)

Concerted efforts must be made to prevent more of these scams in the country.
An appropriate implementation and enforcement culture is needed which involves
prompt prosecution of defaulters and enforcement of penalties.

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x.)

Managers of retirement and death benefits scheme must improve on its services and
be open to all enquiries. There is need for more automation to make the scheme

xi.)
xii.)

highly mobile and sustainable.


Retirement benefits should be funded by both the employer and the employee.
Also, there must be strict regulation, supervision and effective administration of all
retirement and death benefit matters in the country.

CHAPTER THREE
THEORETICAL FRAMEWORK AND RESEARCH METHODS
3.1

Theoretical Framework

The Idealistic Theory


This study anchors firmly on the Idealistic Theory was propounded by Plato in 1943. This
theory is based on the proposition that it is peoples ideas that influence their culture, behavior,
organization of their society; therefore, corruption is the nature of social and moral values
prevailing in the society (Nkom, 1982). This theory explains corruption in terms of some selfish
ideas, which are prevalent in the value system of the society (Anazodo, Okoye, and Ezenwile,
2012). A simple extension of this logic leads to perception of corruption as emergent perversion
of morality and value system in the society. This argument sets the platform on which the
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positions of two different schools of thought were built. These are the traditionalist school and
the modernist school.
The argument of the traditionalist is that corruption and unethical practices in Nigeria are
symptoms of perversion of traditional values, beliefs, norms, ethics, and so on (Azelama, 2002).
This school blames corruption on invasion of African culture by the West; that is, Europeans
need to bring civilization to Africa.
According to this theory, the antidote and recipe to the diseases of corruption are crystal
clear. It is to go back to the African traditional values of hard work, honesty, communal lifestyle,
neighborliness and celebration of good characters and track record in governance, and so on
(Azelama, 2002). However, this school of thought is flawed on the ground that it fails to direct
its focus on corruption in traditional African societies. Nevertheless, it is doubtful, however,
whether corruption in traditional African societies was not far lower than what we have in
Nigeria since independence.
In relating this theory, retirement benefits have been hindered by the rate of sharp or
corrupt practices in the public service and the society at large. Funds which are meant for retired
workers are stolen by corrupt officials. Most retired police officers on their retirement benefit for
survival after retirement as much may not have been achieved during their service days.
Maslows Hierarchy Needs Theory applies to the fact that most retirees and even those still in
service work and crave for the actualization of what Maslow called the self fulfilment needs and
a better ending of their carrier service or blissful retirement period (Boeree, 2006).
A Sociological Analysis: Durkheims Strain Theory

21

Within the purview of sociology, Durkheims strain theory is found useful to explain sharp
practices in the retirement and death benefit administration. Norms are specific behavioural
standards in societies. They are ever-changing, shifting as society shifts; mutable, emergent,
reflective of inherent biases and interests; vary from class to class, and in the generation gap.
Contrary to norms is deviance. From the above characterizations, we can deduce that deviants
are criminals who challenge and oppose normal behaviours in groups and societies, and, thus,
engage themselves in sharp or corruptible practices, such people are unregulated, and fall under
anomie, lawlessness, and crime.
Emile Durkheim saw crime as a factor in public health, an integral part of all healthy society
(Durkheim, 1938). His strain theory of anomie attributes social deviance to extremes of the
dimensions of social bond categorized under three forms of suicide. Altruistic suicide (i.e. death
for the good of the group); egoistic suicide (i.e. death for the removal of the self due to or
justified by the lack of ties to others); and anomic suicide (i.e. death due to the confounding of
self-interest and societal norms). Likewise, Durkheim continued that individuals may commit
crimes for the good of an individual group, for the self due to or justified by lack of ties, or
because the societal norms that place the individual in check no longer have power due to
societys corruption. In this paper, Durkheim strain theory of anomie is applicable to a police
officer in retirement and death benefit office who become corruptible for the good of his group,
for the self due to or justified by lack of ties, or because the societal norms that place him in
check no longer have power due to societal corruption.
3.2

Research Methods

22

This section provides an overview of the research design, the population of the study,
sample size and techniques used for the study as well as sources of data for the study, research
instrument and method of data analysis.
3.2.1

Research Design

In this research work, the survey research design was used in the study. It was used to accurately
examine the sharp practices in the administration of retirement and death benefits in the Nigerian
police force.

3.2.2

Population/Sample
The population for this study comprise of the management and staff of the Nigerian

Police Force. The studys population consisted of Police Officers currently serving at the
Nigerian Police Force Headquarters in Benin City, Edo State, Nigeria.
3.2.3

Sampling size and Sampling Technique


This research adopted the simple random sampling to select the population sample. The

simple random sampling allowed all element of the population an equal chance of being selected
for the sample population. The study population comprised police officers serving in the
Nigerian Police Headquarters in Benin City, Edo State, Nigeria. The studys population
comprised of two hundred and seventy five (275) police officers out of which a sample
population of two hundred (200) representing 72.2% of the total population was drawn.
23

3.2.4. Method of Data Collection


In carrying out this study, both primary and secondary sources of information gathering
were used. Information were collected from the primary source through the use of structured
questionnaires. That is copies of questionnaires were distributed to the respondents by the
researcher. They were asked to fill the required information. Collections were done by the
researcher.
In essence, the questions asked in the questionnaire were tailored to the data that helped
to provide answers to the research questions in the study. The use of the primary source of data
collection provided first-hand testimony or direct evidence concerning the study under
investigation.
Also, with respect to the secondary source of data collection, some information were
derived from textbooks, articles in newspapers, journals and issues on the subject matter.
Information that were gathered from the secondary sources were used to validate the responses to
the questionnaires and to also examine other people's views and recommendations on the study
under review
3.2.4.1 Instrument
The major research instrument that was adopted for the study is the questionnaire. The
choice for the use of questionnaire is due to the advantages it has over other data collection
methods.

24

The questionnaire was made up of two sections. The first section which is section A;
questions (1-6) contained the demographic data of the respondents, section B - F, questions (731) contained questions in line with the study objectives.
3.2.5

Data Analysis
The method of data analysis that was adopted for the analysis of the data gathered for the

study is the use of percentage analysis. Data collected were analyzed statistically and
calculations were done to indicate which of the variables received greater responses of the
subject participants.

CHAPTER FOUR
4.0

PRESENTATION OF DATA AND DISCUSSION OF RESULTS


This chapter is concerned with the analysis and interpretation of the data collected from

the research questionnaires distributed to two hundred police officers currently serving in the
Nigerian Police Headquarters in Benin City, Edo State, Nigeria. Also, all copies of the
questionnaire distributed were duly filled and returned, thus representing 100% ,response rate.
This is represented in the table below.
Table 4.1

Frequency distribution showing the total studys population, sample


population and number of administered and returned questionnaires
25

NUMBER

PERCENTAGE (%)

TOTAL POPULATION OF POLICE


OFFICERS IN POLICE HEADQUARTERS,
BENIN

275

100

SAMPLED POPULATION FROM TOTAL


POPULATION OF OFFICERS

200

72.7

TOTAL NUMBERS OF ADMINISTERED


AND RETURNED QUESTIONNAIRES

200

100

(Source: Field Work, 2016)


4.1

Bio-Data Analysis

The result of the field work regarding section A of the questionnaire is presented below stating
with sex of the respondents, followed by age, educational status, marital status, religion and rank.
Table 4.2
Demographic characteristics of respondents
Sex
Number of respondents
Male
179
Female
21
Total
200
Age
Number of respondents
Less than 25 years
53
25-40 years
108
Greater than 40 years
39
Total
200
Educational qualification
Number of respondents
Primary
23
Secondary
98
Tertiary
79
Total
200
Marital Status
Number of respondents
Married
112
Single
79
Divorced
9
26

Percentage %
89.5%
10.5%
100%
Percentage %
26.5%
54%
19.5%
100%
Percentage %
11.5%
49%
39.5%
100%
Percentage %
56%
39.5%
4.5%

Total
Religion
Christian
Muslim
Pagan
Total
Rank
Constable
Corporal
Sergeant
Inspector
Assistant superintendent
Superintendent
Deputy superintendent
Chief superintendent
Total
Source: Field work, 2016

200
Number of respondents
144
53
3
200
Number of respondents
31
42
50
30
20
5
12
10
200

100%
Percentage %
72%
26.5%
1.5%
100%
Percentage %
15.5%
21%
25%
15%
10%
2.5%
6%
5%
100%

From table 4.2, it shows that the 179 (89.5%) of the respondents are male; while 21
(10.5%) of the respondents are females, indicating that the male police officers were more in the
respondents.
Table 4.2, also shows that 53(26.5%) of the respondents were less than 25 years, 108
(54%) were within the age bracket of 25 to 40 years and 39 (19.5%) were greater than 40 years.
This implies that majority of the respondents were within the age bracket of 25-40 years.
In educational qualification, 23 (11.5%) of the respondents had only primary education,
98 (49%) had up to secondary education and 79 (39.5%) had up to tertiary education. This
implies that a majority of the respondents had secondary education.
In view of their marital status, 112 (56%) of the respondents were married, 79 (39.5%)
were single and 9 (4.5%) were divorced. This implies that a majority of the respondents were
married.

27

Information in table 4.2 shows that with respect to religion of respondents, 144 (72%)
were Christians, 53 (26.5%) were Muslims, 3 (1.5%) were pagans. This implies that majority of
the respondents were Christians.
From table 4.2, it also shows that 31 (15.5%) of the respondents were constables, 42
(21%) were corporals, 50(25%) were sergeants, 30 (15%) were inspectors, 20 (10%) were
assistant superintendent, 5(2.5%) were superintendents, 12 (6%) were deputy superintendents
while 10 (5%) were chief superintendents. This implies that majority of the respondents were
corporals.

Table 4.3: Frequency distribution showing respondents views of the type of retirement and
death benefit offered in the Nigerian Police Force
S/
N
1.

Items

Yes

No

Total

Lump sum benefit in the form of gratuity, based on the number


of years of service.
%

154
77

46
23

200
100

2.

Terminal compensation package.

24

176

200

12

88

100

Monthly pension payments guaranteed for life, the rate of N


payment being dependent on the length of years of service.
o
%

188

12

200

94

100

Survival benefit, paid to the legal surviving spouse of the dead N


employee.
o
%

13

187

200

6.5

93.5

100

3.

4.

N
o
%

28

5.

Accumulated Contributions, which is a one-time lump-sum N


payment equal to accumulated contributions being distributed o
among primary beneficiaries of the dead employee in the absence %
of a surviving spouse.

26

174

200

13

87

100

(Source: Field Work, 2016 Response of respondents to questions 7-11 of Section B of the
research questionnaire)
Table 4.3 information shows that 154 (77%) of the respondents agreed that the Nigerian
Police Force offers lump sum benefit in the form of gratuity, based on the number of years of
service, while 46 (23%) did not agree to the assertion. With respect to terminal compensation
package, 24 (12%) of the respondents that agreed that the police force offer such a benefit, while
176 (88%) of the respondents disagreed with the assertion. The table also shows that 188 (94%)
of the respondents agreed that the police force offers monthly pension payments guaranteed for
life, the rate of payment being dependent on the length of years of service, while 12 (6%)
disagreed with the assertion. 13 (6.5%) of the respondents agreed that the police force offers
survival benefit, paid to the legal surviving spouse of the dead employee, while 187 (93.5%) of
the respondents disagreed to the assertion. With respect to accumulated contributions, which is a
one-time lump-sum payment equal to accumulated contributions being distributed among
primary beneficiaries of the dead employee in the absence of a surviving spouse, 26 (13%)
agreed that the police force offers such a benefit, while 174 (87%) disagreed with the assertion.
Thus from the above analysis, it shows that common benefits offered by the Nigerian Police
Force are Lump sum benefit in the form of gratuity, based on the number of years of service and
monthly pension payments guaranteed for life, the rate of payment being dependent on the length
of years of service.
Table 4.4: Frequency distribution showing sharp practices in the administration of
retirement and death benefits in the Nigerian Police Force
S/
N

Items

Yes
29

No

Total

12.

13

14

15

16

Delays in releasing retirement benefits to police officers upon N


retirements and death benefits to eligible dependants upon the o
death of officers while in active service.
%
Wrong computations of retirement and death benefits.

N
o
%

Some officials corruptly enrich themselves with retirement and N


death benefits funds by falsifying and adding non-existing o
names to beneficiary list, thereby swelling up the cost of funding %
retirement and death benefits.
Restrictive and sharp practice in the investment and management N
of pension funds.
o
%
Forcing retired police officers and eligible dependants of police N
officers that died in active service to queue up endlessly under o
rain and sun just for the payment of retirement and death %
benefits.

183

17

200

91.
5
107

8.5

100

93

200

53.
5
171

46.5

100

29

200

85.
5

14.5

100

121

79

200

60.
5
169

39.5

100

31

200

84.
5

15.5

100

(Source: Field Work, 2016 Response of respondents to questions 12-16 of Section C of the
research questionnaire)
Table 4.4 information shows that 183 (91.5%) of the respondents agreed that there are
delays in releasing retirement benefits to police officers upon retirements and death benefits to
eligible dependants upon the death of officers while in active service, 17 (8.5%) disagreed with
the assertion. 107 (53.5%) agreed that there are wrong computations of retirement and death
benefits, 93 (46.5%) of the disagreed with the assertion. 171 (85.5%) agreed that some officials
corruptly enrich themselves with retirement and death benefits funds by falsifying and adding
non-existing names to beneficiary list, thereby swelling up the cost of funding retirement and
death benefits, 29 (14.5%) disagreed with the assertion. 121 (60.5%) agreed that there are
restrictive and sharp practice in the investment and management of pension funds, 79 (39.5%)
disagreed with the assertion. Also, the table shows that 169 (84.5%) of the respondents agreed
that retired police officers and eligible dependants of police officers that died in active service
30

are being forced to queue up endlessly under rain and sun just for the payment of retirement and
death benefits. Thus from the above analysis, it shows that sharp practices in the administration
of retirement and death benefits in the Nigerian Police Force include delays in releasing
retirement benefits to police officers upon retirements and death benefits to eligible dependants
upon the death of officers while in active service, wrong computations of retirement and death
benefits, some officials corruptly enrich themselves with retirement and death benefits funds by
falsifying and adding non-existing names to beneficiary list, thereby swelling up the cost of
funding retirement and death benefits, restrictive and sharp practice in the investment and
management of pension funds and forcing retired police officers and eligible dependants of
police officers that died in active service to queue up endlessly under rain and sun just for the
payment of retirement and death benefits. Also, the analysis shows that among all the sharp
practices, delays in releasing retirement benefits to police officers upon retirements and death
benefits to eligible dependants upon the death of officers while in active service happens to be
the most common sharp practice.

Table 4.5: Frequency distribution showing factors responsible for sharp practices in the
administration of retirement and death benefits in the Nigerian Police Force
S/
N
17.

18

19

Items

Yes

No

Total

Government delays in releasing retirement benefits to police N


officers upon retirements and death benefits to eligible o
dependants upon the death of officers while in active service.
%

173

27

200

86.
5

13.5

100

Lack of effective regulation and supervision of the retirement N


and death benefit scheme in Nigeria.
o
%

138

62

200

69

31

100

Inability to identify better methods, procedures in processing N

176

24

200

31

retirement and death benefits for police officers.

o
%

20

21

88

12

100

Inability to identify effective ways and means of accounting for N


retired police officers and caring for their welfare.
o
%

130

70

200

65

35

100

Corruptible nature of some police officer.

189

11

200

94.
5

5.5

100

N
o
%

(Source: Field Work, 2016 Response of respondents to questions 17-21 of Section D of the
research questionnaire)
From table 4.5, with respect to the factors responsible for sharp practices in the
administration of retirement and death benefits in the Nigerian Police Force, 173 (86.5%) of the
respondents agreed that government delays in releasing retirement benefits to police officers
upon retirements and death benefits to eligible dependants upon the death of officers while in
active service, while 27 (13.5%) disagreed with the assertion. 138 (69%) of the respondents
agreed that lack of effective regulation and supervision of the retirement and death benefit
scheme in Nigeria is a factor, while 62 (31%) disagreed with the assertion. 176 (88%) of the
respondents agreed that the inability to identify better methods, procedures in processing
retirement and death benefits for police officers is a major factor, while 24 (12%) disagreed with
the assertion. 130 (65%) of the respondents agreed that the Inability to identify effective ways
and means of accounting for retired police officers and caring for their welfare, while 70 (35%)
disagreed with the assertion. 189 (94.5%) agreed that corruptible nature of some police officer is
a major factors, while 11 (5.5%) disagreed with the assertion. Thus, from the above analysis, it
shows that corruptible nature of some police officer, the inability to identify better methods,
procedures in processing retirement and death benefits for police officers and government delays
in releasing retirement benefits to police officers upon retirements and death benefits to eligible
32

dependants upon the death of officers while in active service are major factors responsible for the
sharp practices in the police force.
Table 4.6: Frequency distribution showing the effects of sharp practices in the
administration of retirement and death benefits on Police Officers motivation and
commitment levels
S/
N
22

23

24

25

26

Items
Reduced the quality of service delivery.

Reduced my job motivation level.

Reduced my job commitment level.

Made me to be seeking for other better alternative jobs.

Reduced my satisfaction of my job as a police officer.

Yes

No

Total

N
o
%

166

34

200

83

17

100

N
o
%

154

46

200

77

23

100

N
o
%

181

19

200

90.
5

9.5

100

N
o
%

154

46

200

77

23

100

N
o
%

168

32

200

84

16

100

(Source: Field Work, 2016 Response of respondents to questions 22-26 of Section E of the
research questionnaire)
From table 4.6, with respect to the effect of sharp practices in the administration of
retirement and death benefits on Police Officers motivation and commitment levels, 166 (83%)
of the respondents agreed that it reduced the quality of their service delivery, while 34 (17%)
disagreed with the assertion. 154 (77%) agreed that it reduced their job motivation level, while
46 (23%) were in disagreement with the assertion. 181 (90.5%) agreed that it reduced their job
commitment level, while 19 (9.5%) disagreed with the assertion. 154 (77%) of the respondents

33

agreed that it makes them to be seeking for other better alternative jobs, while 46 (23%)
disagreed with the assertion. 168 (84%) of the respondents agreed that it reduced their job
satisfaction level, while 32 (16/5/0 disagreed with the assertion. Thus, from the above analysis, it
shows that reduction of police officers job commitment and their job satisfaction are the major
effect of sharp practices in the administration of retirement and death benefits in the force.
Table 4.7: Frequency distribution showing the ways in which sharp practices in the
administration of retirement and death benefits in the Nigerian Police Force can be
curtailed
S/
N
27

28

29

30

31.

Items

Yes

No

Total

Government should ensure that funds meant for retirement and N


death benefits are release as at when due.
o
%

181

19

200

90.
5

9.5

100

Effective regulation and supervision of the retirement and death N


benefit scheme in Nigeria should be put in place by government. o
%

149

51

200

74.
5

25.5

100

Effective method and procedures for processing retirement and N


death benefits for police officers should be put in place by o
%
government.

183

17

200

91.
5

8.5

100

Effective ways and means of accounting for retired police N


officers should by put in place by government.
o
%

179

21

200

89.
5

10.5

100

Corrupt officers caught with such sharp practices should be N


prosecuted accordingly.
o
%

188

12

200

94

100

(Source: Field Work, 2016 Response of respondents to questions 27-31 of Section F of the
research questionnaire)

34

From table 4.7, with respect to the solutions to the sharp practices in the administration of
retirement and death benefits in the Nigerian Police Force, 181 (90.5%) proposed that
government should ensure that funds meant for retirement and death benefits are release as at
when due, 19 (9.5%) disagreed with the assertion, 149 (74.5%) proposed that effective regulation
and supervision of the retirement and death benefit scheme in Nigeria should be put in place by
government, 51 (25.5%) disagreed with the assertion. 183 (91.5%) of the respondents agreed that
effective method and procedures for processing retirement and death benefits for police officers
should be put in place by government, 17 (8.5%) disagreed with the assertion. 179 (89.5%)
agreed that effective ways and means of accounting for retired police officers should by put in
place by government, while 21 (10.5%) disagreed with the assertion. 188 (94%) agreed that
corrupt officers caught with such sharp practices should be prosecuted accordingly, while 12
(6%) disagreed with the assertion. Thus from the above analysis, it shows that prosecution of
corrupt officers caught with such sharp practices, putting in place effective method and
procedures for processing retirement and death benefits for police officers and timely release of
funds meant for retirement and death benefits by government are the most common solutions
suggested they respondents.
4.8

Hypotheses Testing
There are three hypotheses underlying the study. These hypotheses were analyzed and

interpreted based on the results of the questionnaires using chi square statistics.
Decision Rule
If under this analysis the SPSS computed value of the chi-square (X 2) is greater than the
critical value of the test statistics (that is, value read from table) at a given degree of freedom, we
could conclude that the observed frequency differ significantly from the expected frequency and
35

we would reject the null hypothesis (Ho) at the corresponding level of significance, otherwise we
accept it.
Test for Hypothesis One
Ho: There are no sharp practices currently in the administration of retirement and death benefits
in the Nigerian Police Force.
Ha: There are sharp practices currently in the administration of retirement and death benefits in
the Nigerian Police Force.
Hypothesis one is analyzed and interpreted by collating the average responses from the
questions relevant to ascertaining if there are sharp practices in the administration of retirement
and death benefits in the Nigerian Police Force, which is questions 12-16 of section C of the
research questionnaire.
Thus, the average responses are presented in a table of observed frequencies and chisquare statistics will be used for the analysis. A table is shown below.
Table 13: Are there sharp practices in the administration of retirement
and death benefits in the Nigerian Police Force?
Frequency

Percent

Yes

150

75

No

50

25

200

100.0

Total

(Source: Field Work, 2016 Average response of respondents to question 12-16 of section C
of the research questionnaire)

36

Computation of Chi-square
The corresponding chi-square computation from SPSS is given below.

Table 14: Test Statistics - Are there sharp practices in the administration of retirement
and death benefits in the Nigerian Police Force?
50.000a

Chi-Square
Df

Asymp. Sig.

.000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency
is 100.0.

At level of 0.05, we obtain a tabulated value of X2 as 3.841.


Thus, with a calculated value of 50.0 which is greater than the table value of 3.841, the
null hypothesis is rejected and the alternative hypothesis is accepted, which means that there are
sharp practices currently in the administration of retirement and death benefits in the Nigerian
Police Force.
Inference:
From the analysis above, it can be inferred that there are sharp practices currently in the
administration of retirement and death benefits in the Nigerian Police force. These sharp
practices include delays in releasing retirement benefits to police officers, wrong computation of
retirement and death benefits. Corruption is also another sharp practice in the administration of
retirement and death benefits as corrupt officials enrich themselves with retirement and death
benefits founds by falsifying and adding non-existing names to beneficiary list, thereby swelling
up the cost of funding retirement and death benefits.

37

Test for Hypothesis Two


Ho: Lack of a comprehensive accounting standard is not the only factor responsible for the sharp
practices in the administration of retirement and death benefits in the Nigerian Police Force, but
other factors.
Ha: Lack of a comprehensive accounting standard is the only factor responsible for the sharp
practices in the administration of retirement and death benefits in the Nigerian Police Force, and
not other factors.
Hypothesis two is analyzed and interpreted by collating the responses from the questions
relevant to ascertaining factors responsible for the sharp practices in the administration of
retirement and death benefits in the Nigerian Police Force, which is questions 17-21 of section D
of the research questionnaire. Thus, the responses are presented in a table 15 below.
Table 15: Factors affecting sharp practices in the administration of retirement benefits in
the Nigerian Police Force
S/
N
1.

2.

3.

4.

5.

Items

Yes

No

Total

Government delays in releasing retirement benefits to police N


officers upon retirements and death benefits to eligible o
dependants upon the death of officers while in active service.
%

173

27

200

86.
5

13.5

100

Lack of effective regulation and supervision of the retirement N


and death benefit scheme in Nigeria.
o
%

138

62

200

69

31

100

Inability to identify better methods, procedures in processing N


retirement and death benefits for police officers.
o
%

176

24

200

88

12

100

Inability to identify effective ways and means of accounting for N


retired police officers and caring for their welfare.
o
%

130

70

200

65

35

100

Corruptible nature of some police officer.

189

11

200

38

o
%

94.
5

5.5

100

Thus, from table 15, it shows that corruptible nature of some police officer, the inability
to identify better methods, procedures in processing retirement and death benefits for police
officers and government delays in releasing retirement benefits to police officers upon
retirements and death benefits to eligible dependants upon the death of officers while in active
service are major factors responsible for the sharp practices in the police force. Thus, the null
hypothesis accepted, which states that lack of a comprehensive accounting standard is not the
only factor responsible for the sharp practices in the administration of retirement and death
benefits in the Nigerian Police Force, but other factors.
Inference:
From the analysis above, it can be inferred that lack of a comprehensive accounting
standard is not the only factor responsible for the sharp practice in the administration of
retirement and death benefits in the Nigerian Police Force. Other factors are also responsible for
these sharp practices, such as government delays in releasing retirement benefits to police
officers upon retirement and death benefits, lack of effective regulation and supervision of the
retirement and death benefit scheme in Nigeria, inability to identify better methods, procedures
in processing retirement and death benefits for police officers, and also the corrupt nature of
some police officers.
Test for Hypothesis Three
Ho: Sharp practices in the administration of retirement and death benefits in the Nigerian Police
Force do not have negative effect on the Police Officers motivation and commitment levels.
39

Ha: Sharp practices in the administration of retirement and death benefits in the Nigerian Police
Force have negative effect on the Police Officers motivation and commitment levels.
Hypothesis three is analyzed and interpreted by collating the average responses from the
questions relevant to ascertaining the effect of the sharp practices in the administration of
retirement and death benefits in the Nigerian Police Force, which is questions 22-26 of section E
of the research questionnaire.
Thus, the average responses are presented in a table of observed frequencies and chisquare statistics will be used for the analysis. A table is shown below.
Table 16: Does the sharp practices in the administration of retirement and death
benefits in the Nigerian Police Force have negative effect on the officers job
commitment level?
Frequency

Percent

Yes

164

82

No

36

18

Total
200
100.0
(Source: Field Work, 2016 Average response of respondents to question 22-26 of section E
of the research questionnaire)
Computation of Chi-square
The corresponding chi-square computation from SPSS is given below.
Table 17: Test Statistics - Does the sharp practices in the administration of retirement
and death benefits in the Nigerian Police Force have negative effect on the officers job
commitment level?
81.920a

Chi-Square
Df

Asymp. Sig.

.000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency
is 100.0.

40

At level of 0.05, we obtain a tabulated value of X2 as 3.841.


Thus, with a calculated value of 50.0 which is greater than the table value of 3.841, the
null hypothesis is rejected and the alternative hypothesis is accepted, which means that sharp
practices in the administration of retirement and death benefits in the Nigerian Police Force have
negative effect on the Police Officers motivation and commitment levels.
Inference:
Therefore, it can be inferred that sharp practices in the administration of retirement and
death benefits in the Nigerian Police Force have negative effect on the Police Officers
motivation and commitment levels. These sharp practices reduces the quality of the service
delivered by the police officers, thereby making them relent in going an extra mile in carrying
out their duties. It also reduces the job motivation and commitment level of the officers. Sharp
practices in the administration of retirement and death benefits also reduces the job satisfaction
of police officers. This, in turn, makes them to look outside for other better alternative jobs.

41

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
The study examined the sharp practices in the administration of retirement and death
benefits in the Nigerian Police Force. In doing so, the study used data collected from the research
questionnaires and the data collected were analyzed using percentage analysis.
In examining the examine the sharp practices in the administration of retirement and
death benefits in the Nigerian Police Force, issues on the types of retirement and death benefits
administered in the Nigerian Police Force, the nature of sharp practices in the administration of
retirement and death benefits in the Nigerian Police Force, factors responsible for sharp practices
in the administration of retirement and death benefits in the Nigerian Police Force, the effect of
sharp practices in the administration of retirement and death benefits on Police Officers
motivation and commitment levels and ways in which the sharp practices in the administration of
retirement and death benefits in the Nigerian Police Force can be curtailed, were considered.
Furthermore, the study was made up of five chapters. Chapter one of the study provided
an introductory background to the study, chapter two reviewed related literature, chapter three
was on the research methodology, while chapter four was on the data presentation and analysis.
A total of two hundred questionnaires were administered and retrieved from a sample of
two hundred (200) police officers in Police Headquarters, Benin City. All copies of the
questionnaire were duly filled and returned. The study reveals the following:
i) There are sharp practices currently in the administration of retirement and death benefits in
the Nigerian Police Force.
ii) Lack of a comprehensive accounting standard is not the only factor responsible for the sharp
practices in the administration of retirement and death benefits in the Nigerian Police Force,
42

but other factors such as government delays in releasing retirement benefits to police officers,
lack of effective regulation and supervision of the retirement and death benefit scheme.
iii) Sharp practices in the administration of retirement and death benefits in the Nigerian Police
Force have negative effect on the Police Officers motivation and commitment levels.
5.2

Conclusion
This study has discussed extensively on sharp practices in the administration of

retirement and death benefits in the police force. The concept of retirement and death benefits,
the problem with retirement benefit in Nigeria and the factors responsible for these sharp
practices have been duly discussed in the course of this project work. The problem of retirement
and death benefits payment and its administration is not just a national issue but a global
phenomenon. This research has shown that there are sharp practices being perpetuated in the
administration of retirement and death benefits in the Nigerian Police Force. It has also shown
that sharp practices in the administration of retirement and death benefits in the Nigerian Police
Force have negative effect on the Police Officers motivation and commitment levels. Therefore,
a well organized retirement and death benefits system that will ensure prompt payment of police
officer retirees and their dependants relatives in the case of death benefits is highly desirable and
this must be rigorously pursued by government.
5.3

Recommendations
On the basis of the findings the following recommendations were made:
1. Government should up-grade and increase retirement and death benefit whenever
wages and salaries of workers are increased. This would enable retirees to have higher
retirement benefits, which will enable them purchase their basic needs, and enjoy
improved lifestyles at all times;

43

2. Government should bring retirement and death benefit offices closer to the people in
local government areas with adequate facilities in place, such as canopies to shield the
retirees especially from heat of the sun and rain since they receive services in open
spaces;
3. Prompt and regular payment of retirement and benefits schemes such as gratuities and
pensions are inevitable for their survival, to justify the key objective of the Pension
Reform Act 2004, and to enable retirees such as pensioners plan and manage their
retirement benefits judiciously; and
4. Adequate monitorization and supervision of retirement and death benefit
administration officers on their duty-posts are crucial. This would help to control all
manner of delaying tactics used to facilitate bribery and corruption, and to apply all
necessary sticks and sanctions to stop it e.g. immediate termination of
appointment/employment of any officers found corruptible.

44

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Corporate Publishers Venture) p. 19.
Adebayo, Y. K. (2010). Essentials of Human Resource Management. (Benin: Weliscops
Services) p. 13.
Akinyemi, S. (2012). The Contributory Pension Scheme: Institutional and Legal Frameworks,
Mediterranean Journal of Social Sciences (3)1, pp. 56-63.
Ali, S. (2014) Pension List Area requiring amendment in Pension Act, Daily Independent,
Wednesday, March 28, p.7
Anazodo, R., Okoye, J. C. & Ezenwile, U. (2012) Leadership-Corruption: The bane of Nigeria
Development, African Journal of Social Sciences, Vol.2, No.2, pp.59-68
Armstrong, M. A. (2010). Handbook of Personnel Management Practice. (London: Kogan Press)
p. 221.
Azelama, D. (2002) Unethical Practices in Nigerian Public Sector, Abuja, Scheman Publishing
Company
Balogun, A. (2006). Understanding the New Pension Reform Act 2004, International Social
Security Review, 59(4), pp. 34-44.
Boeree,
G.
(2006).
Abraham
Maslow.
http://webspaces.ship.edu/cgboer/maslow.html.

Available

online

at:

Bogomolova, T. (2005). Pension Economics: Basic Concepts and Relationship- (Geneva: World
Bank Publication).

45

Dalang, L. D. (2006). Investment of Pension Assets for Sustainable Economic Development,


Nigerian Journal of Public Administration and Local Government, 7(2), pp. 67-74.
Durkheim, E. (1938) The Rules of Sociological Method, Chicago: Freepress
Fapohunda, T. M (2013). The Pension System and Retirement Planning in Nigeria,
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Garba and Mamman, (2014) Pension Fund Administration in Nigeria: Problems and Prospects of
Implementation, Undergraduate project, University of Zaria.
Holzmann, R. and Hinz, R. (2005). Old-Age Income Support in the Twenty-First Century: An
International Perspective on Pension Systems and Reform. (Washington, DC: World
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Ijewereme, O. B. (2012) An Assessment of the Position that Nigeria Government has failed in its
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Obafemi Awolowo University, Ile-Ife, Nigeria.
Iwara, G. (2012). Re-Assessing the Legal Framework in Pension Administration, Business
Times, Lagos.
Johnson, J. and Williamson, J. (2006). Do Universal Non-Contributory Old-Age Pensions Make
Sense for Rural Areas in Low-Income Countries?, International Social Security Review,
59(4), pp. 67-73.
Klumpes, P. S. M. and Mason, S. (2012). Fair Value Reporting by Pension Fund Managers:
(London: McGraw Hill) p. 36.
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Nwajagu, C. I. (2007) Procedure for Processing of Retirement Benefits, Unpublished Seminar
Paper Submitted to the Department of PALG
46

Obi, R. U. (2002) An Appraisal of Retirement Policy in Nigeria, Benin Journal of Social


Sciences Vol. 10 & 11, Nos 1 & 2, June, 91 100.
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in Africa, Vol.12, 27-53
Olayiwola, B. (2011) Police Pension Scam: Task Force spend 184.4 Million on DTA, Business
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Palacios, R. and Sluchynsky, O. (2006). The Role of Social Pensions. (Washington, DC: World
Bank Publication).
Robbins, W. A. (2009). Problems and Prospects of Retirement Adjustment on Families of
Retirees in State, Nigeria, Nigerian Journal of Public Administration and Local
Government, 14(1), pp. 89-96.
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Firms in Nigeria, African Journal of Accounting, Economics, Finance and Banking
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47

Ugwu, D. S. (2006). Contributory Pension: A New Approach to Financing Pension Scheme in


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48

APPENDIX
BENSON IDAHOSA UNIVERSITY
FACULTY OF SOCIAL & MANAGEMENT SCIENCES
DEPARTMENT OF SOCIOLOGY & ANTHROPOLOGY
RESEARCH QUESTIONNAIRE
SECTION A (Bio-Data)
1.
2.
3.
4.
5.
6.

Sex: [ ] Male [ ] Female


Age: [ ] Less than 25 years [
] 25-40 years [ ] Greater than 40 years
Educational Status: [
] Primary [ ] Secondary [ ] Tertiary
Marital Status: [ ] Married [
] Single
[
] Divorced
Religion: [ ] Christian [ ] Muslim [ ] Pagan
Rank: [ ] Constable [ ] Corporal [ ] Sergeant [ ] Inspector [
superintendent [ ] Superintendent [ ] Deputy superintendent
[ ] Chief superintendent

] Assistant

SECTION B: This section of the questionnaire is to elicit from you the type of retirement and
death benefit offered in the Nigerian Police Force. Please tick the box as appropriate.
S/N
7.
8.
9.
10.
11.

What are the type of retirement and death benefits offered by the Yes
Nigerian Police Force?
Lump sum benefit in the form of gratuity, based on the number of
years of service.
Terminal compensation package.
Monthly pension payments guaranteed for life, the rate of payment
being dependent on the length of years of service.
Survival benefit, paid to the legal surviving spouse of the dead
employee.
Accumulated Contributions, which is a one-time lump-sum
payment equal to accumulated contributions being distributed
among primary beneficiaries of the dead employee in the absence
of a surviving spouse.

49

No

SECTION C: This section of the questionnaire is to elicit from you if there are sharp practices in
the administration of retirement and death benefits in the Nigerian Police Force.
S/N
12.

13.
14.

15.
16.

Do the following sharp practices in the administration of Yes


retirement and death benefits exist in the Nigerian Police Force?
Delays in releasing retirement benefits to police officers upon
retirements and death benefits to eligible dependants upon the
death of officers while in active service.
Wrong computations of retirement and death benefits.
Some officials corruptly enrich themselves with retirement and
death benefits funds by falsifying and adding non-existing names
to beneficiary list, thereby swelling up the cost of funding
retirement and death benefits.
Restrictive and sharp practice in the investment and management
of pension funds.
Forcing retired police officers and eligible dependants of police
officers that died in active service to queue up endlessly under rain
and sun just for the payment of retirement and death benefits.

No

SECTION D: This section of the questionnaire is to elicit from you the factors responsible for
sharp practices in the administration of retirement and death benefits in the Nigerian Police
Force.
S/N

17.

18.
19.
20.
21.

Which of the following factors is/are responsible for the sharp Yes
practices in the effective administration of retirement and death
benefit in the Nigerian Police Force?
Government delays in releasing retirement benefits to police
officers upon retirements and death benefits to eligible dependants
upon the death of officers while in active service.
Lack of effective regulation and supervision of the retirement and
death benefit scheme in Nigeria.
Inability to identify better methods, procedures in processing
retirement and death benefits for police officers.
Inability to identify effective ways and means of accounting for
retired police officers and caring for their welfare.
Corruptible nature of some police officer.

No

SECTION E: This section of the questionnaire is to elicit from you the effects of sharp practices
in the administration of retirement and death benefits on Police Officers motivation and
commitment levels.
50

S/N
22.
23.
24.
25.
26.

The sharp practices in the administration of retirement and death Yes


benefits in the Nigerian Police Force has resulted in the following:
Reduced the quality of service delivery.
Reduced my job motivation level.
Reduced my job commitment level.
Made me to be seeking for other better alternative jobs.
Reduced my satisfaction of my job as a police officer.

No

SECTION F: This section of the questionnaire is to elicit from you the ways in which sharp
practices in the administration of retirement and death benefits in the Nigerian Police Force can
be curtailed.
S/N
27.
28.
29.

30.
31.

The sharp practices in the administration of retirement and death Yes


benefits in the Nigerian Police Force has resulted in the following:
Government should ensure that funds meant for retirement and
death benefits are release as at when due.
Effective regulation and supervision of the retirement and death
benefit scheme in Nigeria should be put in place by government.
Effective method and procedures for processing retirement and
death benefits for police officers should be put in place by
government.
Effective ways and means of accounting for retired police officers
should by put in place by government.
Corrupt officers caught with such sharp practices should be
prosecuted accordingly.

51

No

NIGERIAN POLICE FORCE, EDO STATE COMMAND


LIST OF VARIOUS DEPARTMENTS
1. A department 2. Special anti robbery squad (SAS)
3. Confidential 4. Anti robbery 5. X Squad
6. Officers mess 7. MSS (Mechanise Salary System)
8. Open registry 9. Works 10. Transport
11. Administration
Total Number of Police Officers

Source: MSS (Mechanise Salary System Unit)

52

30
40
17
35
25
15
30
20
32
21
10
275

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