AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
You can keep your RRSP after moving to Nigeria: it is not deemed sold when you leave. Withdrawals made once you are non-resident have non-resident tax withheld at 25%, unless the Canada–Nigeria treaty reduces it, and that is generally your final Canadian tax. Cashing in before you go instead adds the whole amount to your income for your last resident year.
For Nigerians who spent their working years in Canada, the RRSP is often the largest single savings pot, and the decision about it is one of the most consequential parts of a move home. There are three basic routes, and each is taxed differently.
What leaving Canada does, and does not do
The CRA's emigrants page says that when you leave, most of your property is treated as sold at fair market value on your departure date, the "departure tax". RRSPs, RRIFs, TFSAs and pensions are on the list of excluded property. Your RRSP can therefore stay invested, untaxed, after you leave.
Option 1: keep it and withdraw from Nigeria
Guide T4058 (non-residents and income tax, modified 20 January 2026) says Canadian payers withhold non-resident tax at 25% on RRSP, RRIF, pension and annuity payments to non-residents, and that a tax treaty may reduce the rate. The tax withheld is generally your final Canadian tax on that income; you do not have to file a return just for it.
T4058 also describes the section 217 election: you can choose to report these payments on a Canadian return and pay tax under an alternative method, which may refund some or all of the tax withheld. Whether it helps depends on your other income for the year, so run the numbers or ask a preparer before filing.
Worked example (illustrative figures only)
| Item | CAD |
|---|---|
| Lump-sum withdrawal while living in Lagos | 20,000 |
| Non-resident tax withheld at 25% | 5,000 |
| Received | 15,000 |
Check: 20,000 × 25% = 5,000; 20,000 − 5,000 = 15,000. A treaty rate below 25% would increase what you receive; the Canada–Nigeria convention (in force since 16 November 1999) has a pensions article that sets what applies, and treaties may treat periodic payments differently from lump sums. Read it, or ask your financial institution what rate it will apply once it has your Nigerian residence on file.
Option 2: cash it in before you leave
A withdrawal while you are still resident is added to your income for that year and taxed at your ordinary rates on your final resident return. In a year you also had a full salary, that can be expensive. It can make sense when the departure year's income is low, for example if you leave in January, but compare the result with the 25% non-resident rate before deciding.
Option 3: convert to a RRIF and draw it down
Converting to a RRIF turns the plan into regular payments. T4058 lists RRIF payments alongside RRSP payments for the 25% withholding, and the treaty may treat regular payments differently from lump sums; check the pensions article. A RRIF also suits people who want an income stream rather than a single transfer to Nigeria.
Contributing after you leave
The CRA sets your RRSP deduction limit at the lesser of 18% of the previous year's earned income and the annual limit (CAD 32,490 for 2025), with earned income built mainly from employment and self-employment earnings. Once your income is earned in Nigeria, little or no new room arises. Unused room carried forward can still be used, but a deduction only helps if you have Canadian income to deduct it against.
Nigeria's side
Once resident in Nigeria, your RRSP withdrawals may also be within the reach of Nigerian tax. Whether Nigeria taxes them, and whether a credit is available there for the Canadian tax withheld, is for a Nigerian tax adviser. Ask before your first large withdrawal, not after.
Getting the money to Nigeria
Withdrawals are paid in Canadian dollars into an account you nominate. Many people keep one Canadian bank account open after the move for this reason, since some providers will only pay into a Canadian account. Plan the conversion separately from the withdrawal: drawing a large sum and converting it all on one day ties the whole amount to that day's rate. Keep the provider's tax slip for each year you withdraw, both for any section 217 return and for a Nigerian adviser.
What to check first
- Confirm your departure date and tell your RRSP provider when you become non-resident.
- Ask the provider which withholding rate it will apply and on what basis.
- Compare a pre-departure withdrawal with withdrawals at the non-resident rate.
- Decide whether a section 217 election is worth filing in any year you withdraw.
For the TFSA side of the move, see contributing to a TFSA after moving to Nigeria; for government pensions, OAS if you retire to Nigeria and CPP paid into a Nigerian bank.
Where Pryme fits
RRSP withdrawals arrive in Canadian dollars. A Pryme account can receive money in the currencies it holds and convert it with Swap when you choose, with the rate shown first and the fee on its own line, so you can move to naira in stages rather than all at once. Outside Nigeria, Pryme's services are provided through regulated partners.
Questions people ask
Do I have to close my RRSP when I move to Nigeria?
No. RRSPs are excluded from the deemed disposition on departure, so the plan can stay invested.
How much tax is taken from RRSP withdrawals if I live in Nigeria?
Non-resident tax is withheld at 25% unless the Canada–Nigeria treaty reduces it, according to CRA Guide T4058.
What is the section 217 election?
An option to report RRSP and similar payments on a Canadian return under an alternative method, which may refund some of the 25% withheld.
Can I still contribute to my RRSP from Nigeria?
Only with existing room. New room depends on earned income, which mostly stops once you work in Nigeria.
Sources
- CRA: Dispositions of property for emigrants (modified 20 Jan 2026) · accessed Oct 2026
- CRA: Guide T4058, Non-Residents and Income Tax 2025 (modified 20 Jan 2026) · accessed Oct 2026
- CRA: How contributions affect your RRSP deduction limit (29 Jan 2026) · accessed Oct 2026
- Publications Canada: Canada–Nigeria tax convention record, Canada Treaty Series 1999/48 · 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.