The Nigerian Federal Government has launched a new pension scheme that allows Nigerians living abroad, as well as foreigners earning in Nigeria, to contribute to their retirement savings in foreign currency
The initiative is part of efforts to expand participation in the Contributory Pension Scheme (CPS), attract foreign currency inflows, and provide contributors with more flexible investment options.
Under the scheme, eligible participants can open a Retirement Savings Account (RSA) with a Pension Fund Administrator (PFA) and make contributions in U.S. dollars. Contributions can be made daily, weekly, or monthly, depending on the contributor’s earning schedule.
Funds are held in a Foreign Currency Dollar Fund (FCDF) and invested in dollar-denominated instruments such as U.S. government bonds, Eurobonds, and eligible Nigerian corporate bonds listed on global exchanges.
Contributors are required to provide valid identification, including a National Identification Number (NIN) and international passport, and undergo Know Your Customer (KYC) verification.
Pension Fund Administrators must credit contributions to the RSA within 24 hours of receipt, and any contribution above $10,000 must be reported to the Nigeria Financial Intelligence Unit.
Withdrawals can be made twice a year before retirement, with funds accessible in either U.S. dollars or naira equivalents upon retirement. The scheme provides currency diversification, ensures transparency, and enables Nigerians abroad and expatriates in Nigeria to secure their retirement benefits while supporting the growth of the Nigerian pension system.
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