The National Pension Commission (PenCom) has launched a groundbreaking initiative that allows Nigerians in the diaspora to save their pensions in US dollars. Released in September 2025, the Guidelines on Foreign Currency Pension Contributions marks a significant expansion of Nigeria’s Contributory Pension Scheme (CPS), offering diaspora Nigerians and foreign workers a secure pathway to build retirement savings aligned with global standards.
Who Can Participate?
The scheme welcomes Nigerians living and working abroad, as well as Nigerians and foreigners working in Nigeria for foreign companies or international organizations who receive salaries in foreign currency. This inclusive approach ensures that millions of diaspora Nigerians can now formally contribute to their retirement without being constrained by naira-only contributions.
To qualify, contributors need valid documentation including a National Identification Number, international passport, and beneficiary details. All participants must undergo strict Know Your Customer (KYC) checks in line with anti-money laundering regulations.
How It Works
All contributions must be denominated in US dollars, even if you earn in other foreign currencies. The structure is flexible yet secure: sixty percent of savings can be accessed for contingent withdrawals before retirement, while forty percent must be preserved strictly for retirement.
Nigerians abroad will remit contributions through Non-Resident Nigerian Ordinary Accounts, while Nigeria-based dollar earners will use domiciliary accounts linked to Pension Fund Administrators’ (PFAs) custodial banks. Notably, banks cannot charge fees on these transfers.
Investment and Security
Your dollar contributions will be pooled into a Foreign Currency Dollar Fund managed by licensed PFAs. Investments include dollar-denominated Federal Government bonds, Eurobonds, supranational bonds, and eligible Nigerian corporate bonds listed on global exchanges, ensuring both safety and competitive returns.
For transparency and compliance, all foreign currency contributions above $10,000 must be reported to the Nigeria Financial Intelligence Unit within 24 hours, safeguarding the scheme from abuse.
This initiative represents a strategic move to deepen diaspora engagement while modernizing Nigeria’s pension system for the 21st century.