A major reform has been introduced into Nigeria’s pension system as the federal government rolls out a dollar-based pension scheme targeted at Nigerians in the diaspora and foreign nationals. The scheme also covers local workers both Nigerians and expatriates whose salaries are paid fully or partly in foreign currency.
The initiative is a central feature of PensionRevolution 2.0, recently unveiled by the National Pension Commission (PenCom). It is designed to increase foreign currency inflows, expand access to pension services, and modernize the country’s retirement savings framework.
Under the new guidelines, contributors are required to open a Retirement Savings Account (RSA) with a Pension Fund Administrator (PFA). Diaspora Nigerians are to make contributions through Non-Resident Nigerian Ordinary Accounts (NRNOAs), while those living in Nigeria must use domiciliary accounts designated by their Pension Fund Custodian (PFC).
Every contribution will be split into two components: 60 percent set aside for contingent withdrawal and 40 percent preserved for retirement. Contributors may also choose whether to access benefits in foreign currency or in naira. A minimum holding period of six months applies before withdrawals can be made.
The scheme applies to salaries earned in any foreign currency, although remittances must be made in U.S. dollars. Importantly, the receiving bank is barred from charging fees on these contributions, ensuring full value is retained in the contributor’s RSA.
PenCom described the development as a turning point for the Contributory Pension Scheme, highlighting its potential to broaden participation, deepen financial inclusion, and attract long-term capital into the Nigerian economy.
