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The short answer
Yes. PenCom's Guidelines on Foreign Currency Pension Contributions (September 2025) let Nigerians living and working abroad join the Contributory Pension Scheme voluntarily, contributing in US dollars through a PFA from a Non-Resident Nigerian Ordinary Account. Contributions are split 60% accessible and 40% for retirement, can first be withdrawn after six months, and benefits from age 50 are paid in dollars, or in naira on request.
What changed in 2025
For years a Nigerian who left a job at home kept an RSA that simply stopped growing. In September 2025 the National Pension Commission (PenCom) published Guidelines on Foreign Currency Pension Contributions. They allow two groups to take part voluntarily in the Contributory Pension Scheme (CPS) in foreign currency:
- Nigerians living and working abroad.
- Nigerians and foreigners working in Nigeria for foreign companies or international organisations who are paid all or part of their pay in foreign currency.
Contributions must be in US dollars, even if you are paid in pounds, euros or another currency, and they are held in a separate Foreign Currency Dollar Fund managed by your PFA.
Setting it up
- Pick a PFA and complete its RSA registration forms. If you already have an RSA, the guidelines say a holder who moves abroad can keep it by updating their documentation.
- Provide documents: NIN, valid international passport, and next-of-kin details (name, email, address, phone).
- Biometrics: fingerprint, iris or facial image must match NIBSS or NIMC records, and the PFA collects your BVN and NIN. If you have no BVN, see NRBVN explained.
- Open a Non-Resident Nigerian Ordinary Account (NRNOA) with a Nigerian bank. Contributions go from that account to your PFA's foreign currency collection account held with its custodian (PFC).
- Sign the consent form that lets the PFA confirm your KYC with your bank.
- Quote your RSA PIN on every transfer. You may contribute daily, weekly or monthly, and the guidelines say the collecting bank may not charge fees on the contributions.
Getting money out
| Rule | What the guidelines say |
|---|---|
| Split of each contribution | 60% contingent (accessible), 40% retirement |
| First withdrawal | Contributions must stay at least six months |
| Temporary access | Six months after the first contribution, no more than twice a year, with two working days' notice |
| Retirement benefit | From age 50, or earlier on health grounds |
| Currency of payment | US dollars, en bloc or programmed withdrawal; naira on request |
| If you join after 50 | Full access to contributions with one month's notice to the PFA |
This is a separate regime from the naira voluntary contributions that employees make. For those, a PenCom circular effective 10 June 2024 allows 50% of voluntary contributions to be withdrawn one year after the contribution date (KPMG via Mondaq).
If you already have an RSA from a job in Nigeria
Many people reading this opened an RSA through a Nigerian employer before they left. That account does not disappear when the salary stops. The foreign currency guidelines say an existing RSA holder who moves abroad may keep the RSA by updating their documentation with the PFA, so the first step is to contact your PFA with your RSA PIN and confirm that your phone number, email, address abroad and next of kin are current. Ask at the same time how its foreign currency fund works alongside your existing naira balance.
The guidelines also say RSAs opened under them are exempt from PenCom's regulation on transferring RSAs between PFAs, so choose your PFA with care at the start: compare service from abroad, app access and how quickly it answers email.
Tax and fees
Under section 10 of the Pension Reform Act, as the guidelines restate, contributions and the interest on them are not taxable, but income on contributions is taxed if you withdraw within five years of the contribution date. Withdrawals after five years are tax-free. Your country of residence may treat the contributions and withdrawals differently, so check its rules.
PenCom's circular of 5 March 2026 set fees for Fund VII, the foreign currency pension contributions fund: 1.20% management, 0.35% custody and 0.15% regulatory, 1.70% in total, with no fee charged while the fund's unit price is below US$1.
Worked example
Example. You contribute US$200 a month for 12 months, US$2,400 in total. Under the 60/40 split, US$1,440 is contingent and US$960 is reserved for retirement. If you withdraw some of the contingent part in year two, any investment income on it is taxable because it is within five years. On an average balance of US$2,400, a 1.70% annual fee is about US$40.80.
What to check first
- Ask your PFA whether it has opened its foreign currency fund and collection account, and for the account details in writing.
- Ask your Nigerian bank whether it offers the NRNOA and how you open it from abroad.
- Check how your country of residence taxes foreign pension contributions before committing large sums.
- Keep your RSA PIN, NIN and contact details current with the PFA.
Background on the domestic scheme: pension contribution rates in Nigeria. If you are leaving soon, see what to do with your Nigerian accounts.
Where Pryme fits
PenCom's route runs through an NRNOA at a Nigerian bank and your PFA. A Pryme account can hold the dollars you set aside each month (multicurrency) before you send them on, but it is not the NRNOA the guidelines name.
Questions people ask
Can I pay into my Nigerian pension while living abroad?
Yes. PenCom's September 2025 guidelines let Nigerians living and working abroad contribute voluntarily in US dollars through their PFA, from a Non-Resident Nigerian Ordinary Account.
Can I withdraw my RSA if I relocate abroad?
Under the foreign currency guidelines, 60% of contributions is accessible after six months, up to twice a year. Withdrawals from the domestic RSA follow different rules; ask your PFA.
What currency are diaspora pension contributions in?
US dollars only. Benefits are paid in dollars, or in naira on request.
Is diaspora pension contribution taxed in Nigeria?
Contributions and interest are not taxable under section 10 of the Pension Reform Act, but income is taxed if withdrawn within five years of contribution.
Sources
- PenCom: Guidelines on Foreign Currency Pension Contributions (Sep 2025) · accessed Oct 2026
- PenCom: Circular on Fund V, Fund VII and APA fees (5 Mar 2026) · accessed Oct 2026
- Mondaq: PenCom circular on voluntary contributions (24 Jul 2024) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.