The National Pension Commission (PenCom) has broadened the scope of the Contributory Pension Scheme (CPS) by issuing new guidelines that allow Nigerians living abroad and foreign nationals working in Nigeria to make pension contributions in foreign currency.
The guidelines, known as the Foreign Currency (FCY) Pension Contributions Framework, were unveiled by the Director-General of PenCom, Omolola Oloworaran, who described the initiative as a milestone in the Commission’s ongoing PensionRevolution2.0 reform agenda. According to her, the framework is designed to accommodate Nigerians earning overseas as well as workers in Nigeria who receive part or all of their salaries in foreign currency.
Under the arrangement, contributors will be required to open Retirement Savings Accounts (RSAs) with licensed Pension Fund Administrators (PFAs) and can remit their pensions in US dollars. They may also access their retirement benefits in the same currency unless they opt for conversion. Contributions will be structured so that 60 percent is available for contingent withdrawals, while 40 percent is reserved strictly for retirement. To further strengthen compliance, all funds must remain in the RSA for a minimum of six months before withdrawal.
For implementation, diaspora Nigerians are expected to channel their contributions through Non-Resident Nigerian Ordinary Accounts (NRNOAs) in line with Central Bank of Nigeria (CBN) guidelines, while residents in Nigeria will remit through domiciliary accounts. Pension Fund Custodians and their collecting banks are barred from charging fees on these foreign currency remittances. PenCom also clarified that individuals who earn in currencies other than the US dollar may participate, but remittances must be converted to dollars.
Ololoworaran emphasized that the reform is aimed at expanding pension coverage, boosting financial inclusion, and enhancing the investment base of the CPS through diversified currency inflows. She added that the framework aligns with international best practices and ensures transparency, accountability, and robust risk management in pension administration.
With this development, Licensed Pension Fund Operators (LPFOs) are now empowered to receive, manage, and invest foreign currency contributions under the contributory scheme, thereby extending the benefits of Nigeria’s pension system to a wider pool of workers at home and abroad.
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PenCom Launches Dollar Pension Scheme for Nigerian’s in Diaspora, Foreign Workers
The National Pension Commission (PenCom) has broadened the scope of the Contributory Pension Scheme (CPS) by issuing new guidelines that allow Nigerians living abroad
