JUST IN: FG Unveils Dollar-Based Pension Scheme for Nigerians Abroad and Expatriates

Abuja, September 27, 2025 — The Federal Government has introduced a groundbreaking pension reform that allows Nigerians living abroad, as well as foreigners earning in Nigeria, to contribute to and grow their retirement savings in foreign currency.

The new framework, issued by the National Pension Commission (PenCom) under the Guidelines on Foreign Currency Pension Contributions, gives contributors the option to make and retain pension savings in U.S. dollars. This move marks the first time Nigeria’s pension system has formally accommodated the diaspora community and expatriates within its retirement savings structure.

Key Features of the Scheme

• Eligibility: Nigerians working abroad, and foreigners or Nigerians in Nigeria who receive part or all of their salaries in foreign currency.
• Contribution & Access: Contributions must be made in U.S. dollars through licensed Pension Fund Administrators (PFAs). Contributors can also choose to withdraw benefits in dollars, unless they opt to convert to naira.
• Channels: Nigerians abroad are to remit funds via Non-Resident Nigerian Ordinary Accounts (NRNOA), while contributors in Nigeria are to use domiciliary accounts tied to Pension Fund Custodians.
• Transparency & Oversight: All contributions above $10,000 must be reported within 24 hours to the Nigeria Financial Intelligence Unit (NFIU). Suspicious transactions below that threshold will also be flagged.
• Investments: Pension Fund Administrators will manage the savings under a dedicated “Dollar Fund,” primarily investing in safe, dollar-denominated instruments such as Eurobonds and government-backed securities.

Why It Matters

PenCom said the reform would boost pension participation among Nigeria’s growing diaspora population, while also protecting contributors from the volatility of the naira. Analysts note that it could attract billions of dollars in remittances into the formal pension system, offering long-term stability for retirees.

Industry stakeholders hailed the scheme as a confidence-building policy that both deepens Nigeria’s pension market and strengthens ties with the diaspora.