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The short answer
You can keep a UK workplace or personal pension and draw it after moving to Nigeria, subject to the scheme's own rules on overseas payments. Under Article 18 of the UK-Nigeria Double Taxation Convention, pensions for past employment are taxable only in the country they come from, so UK pensions are generally taxed in the UK, not Nigeria.
Many Nigerians who spent their working lives in the UK plan to retire home. The UK private pension they built up, through a workplace scheme or a SIPP, does not have to be cashed in before they go. The pot stays in the UK and pays out wherever you live, as long as the provider can pay you and you keep it informed.
Can a UK pension be paid to Nigeria?
There is no UK rule that stops a private pension paying someone who lives in Nigeria. What varies is the provider. Some pay only into a UK bank account; some pay overseas in pounds; some convert. Before you move, ask each provider:
- whether it pays to a non-UK account, and in which currencies;
- what it charges for overseas payments;
- how it confirms you are alive and where you live (many send an annual certificate);
- whether it can still deal with you online or by email from Nigeria.
Keeping a UK bank account open after you move makes life easier, but check that your bank allows non-UK residents to keep accounts.
Who taxes the pension
Article 18 of the UK-Nigeria Double Taxation Convention says pensions and similar remuneration for past employment, and annuities, are "taxable only in the State from which such income is derived", with narrow exceptions for pensions from before April 1979. For a UK workplace or personal pension that usually means the UK. GOV.UK's page on tax when you live abroad says you may pay UK tax if your pension comes from a UK provider and that, where there is a double taxation agreement, the treaty sets where you should pay.
On the Nigerian side, NiDCOM's NGEX diaspora guide to the 2026 tax reforms says foreign pensions are not taxed unless they relate to work done in Nigeria. Put the two together and a UK private pension drawn by a Nigerian resident is in most cases taxed in the UK only. This is information, not tax advice; check your own case.
How UK tax is collected
The provider deducts UK income tax through PAYE using a tax code. Whether you keep the UK Personal Allowance as a non-resident depends on your nationality and circumstances, so check GOV.UK's guidance for your case. Tell HMRC when you leave the UK (see leaving the UK and form P85) so your code reflects your new position.
Lump sums and timing
GOV.UK's workplace pensions guidance says you can usually take up to 25% of a pension pot tax-free in the UK, and that the earliest age to take a private pension is usually 55. That minimum rises to 57 from 6 April 2028, as the NHS Scotland circular on the change confirms; see when you can access a UK private pension. Taking a large taxable lump sum in one year can push you into a higher UK rate, so spread withdrawals if the scheme allows.
A worked example
Example only, using 2026-27 UK rates for a person who keeps the £12,570 Personal Allowance. You draw £18,000 a year from a UK pension while living in Lagos. Taxable after the allowance: £5,430. At the 20% basic rate, UK tax is £1,086, leaving £16,914 a year before any currency conversion or bank charges.
Transferring the pension instead
Some retirees ask about moving the pot to a scheme abroad. Transfers to overseas schemes have their own UK rules and possible tax charges; read transferring a UK pension to Nigeria and get regulated advice before moving any money.
Your State Pension is a separate matter
A private pension and the UK State Pension follow different rules. GOV.UK's page on State Pension rates abroad says yearly increases are paid only if you live in the EEA, Gibraltar, Switzerland or a country with a social security agreement that provides for them, and "You will not get yearly increases if you live outside these countries". Nigeria is not on that list, so a State Pension paid to you in Nigeria stays at the rate you first received abroad. The same page says you claim through the International Pension Centre and can be paid every 4 or 13 weeks. Private pensions are not frozen in this way: their increases depend on the scheme and the product you choose.
Before you leave the UK
- List every pension you have, including small pots from old jobs.
- Update each provider with your new address and email.
- Ask each one how it pays overseas and what proof of life it needs.
- Decide which UK bank or account will receive the money.
- Keep copies of your P60s or pension statements for UK tax.
Paperwork from Nigeria
Providers may ask for proof of life or address. If you are in the UK on a visit, the Nigeria High Commission in London lists a pensioners attestation letter at £45 in total (£20 service charge plus £25 processing) on its consular page. In Nigeria, ask the provider what it accepts, for example a notary's certificate.
Where Pryme fits
A Pryme account gives you UK pound account details alongside naira, so a provider that pays only in pounds can still pay you, and you convert with Swap when you choose, with the rate and fee shown before you approve. Outside Nigeria, Pryme's financial activities are carried out through regulated partners.
Questions people ask
Will I pay tax in Nigeria on my UK pension?
Under Article 18 of the UK-Nigeria treaty, pensions for past employment are taxable only where they come from, and NiDCOM's guide says foreign pensions are not taxed unless linked to work in Nigeria.
Can my UK pension be paid into a Nigerian bank?
It depends on the provider. Ask whether it pays overseas, in which currency and at what charge.
Do I keep my Personal Allowance if I retire to Nigeria?
It depends on your nationality and circumstances. Check GOV.UK guidance on Personal Allowance for non-residents before you rely on it.
Can I take 25% tax-free if I live abroad?
GOV.UK says you can usually take up to 25% of a pot tax-free in the UK. Check how your scheme pays it to an overseas address.
Sources
- GOV.UK: UK-Nigeria Double Taxation Convention (in force text) · accessed Oct 2026
- GOV.UK: Tax on your pension when you live abroad · accessed Oct 2026
- NiDCOM: NGEX Diaspora Guide to the Nigeria tax reforms (Jan 2026) · accessed Oct 2026
- GOV.UK: Workplace pensions · accessed Oct 2026
- GOV.UK: Income Tax rates and Personal Allowances (2026 to 2027) · accessed Oct 2026
- GOV.UK: State Pension if you retire abroad, rates (updated 9 Sep 2026) · 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.