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.

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A government-supported mortgage programme is drawing strong participation from Nigerians abroad eager to invest in real estate back home. The Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF), though managed with private sector backing, is offering long-term loans that many in the diaspora see as their most practical entry into Nigeria’s property market.

The facility provides loans of up to ₦100 million at a 12 percent interest rate for a period of 20 years, with an equity contribution of 20 percent. It is available to both salaried and self-employed Nigerians, whether resident in the country or overseas. The aim is to bridge the gap between demand and supply in the housing sector, which continues to face severe financing challenges.

Stanbic IBTC Bank has positioned itself as a leading provider of the scheme, recently improving on the fund’s terms by offering a reduced interest rate of 9.75 percent and cutting the equity requirement to 10 percent. The bank requires a minimum monthly income of ₦500,000 for salaried applicants and an annual turnover of ₦100 million for self-employed applicants, including those in the diaspora. Other institutions offering the product include Homebase Mortgage Bank, Imperial Homes Mortgage Bank, and Infinity Trust Mortgage Bank.

Demand has been especially strong from Nigerians in the United States, United Kingdom, and Canada. Femi Johnson, former CEO of Homebase Mortgage Bank and past president of the Mortgage Banking Association of Nigeria (MBAN), described the uptake as unprecedented. He explained that for the first time, Nigerians abroad can access mortgage loans at rates and processing speeds comparable to those in their host countries. Johnson noted that interest has come not only from individuals but also from church groups, professional associations, and investment clubs.

Homebase has concentrated its marketing campaigns on these three countries through physical events, online sessions, and targeted advertising across social media platforms. Stanbic has also launched an aggressive marketing push, highlighting new features such as the option to use a portion of retirement savings as part of the equity contribution and joint applications with a spouse.

The fund has generated mixed reactions among diaspora Nigerians. Some see it as an attractive opportunity in a country where inflation is above 30 percent, arguing that the interest rate is relatively low. Others consider the loan still too expensive by international standards, with concerns over the total repayment burden over the tenor of the loan.

One Nigerian in the UK, Deji Okunbo, shared on X that accessing the loan was straightforward and encouraged others to take advantage. Yet other users questioned its affordability, pointing out that a ₦50 million loan at 12 percent could result in over ₦135 million in interest over a 30-year period. Defenders of the programme countered that the rates must be judged in the context of Nigeria’s inflation, noting that a 12 percent mortgage in such an environment is comparatively cheap.

Despite the debate, industry experts believe MREIF could mark a breakthrough for diaspora participation in Nigeria’s property market. By offering structured financing at terms closer to international norms, the programme is being seen as an important step toward unlocking long-term investment in the country’s housing sector.

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