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The short answer
Yes. A Canadian resident reports the gross amount of a Nigerian pension or retiree life annuity on line 11500 of the return, in Canadian dollars. If Nigerian tax was deducted you claim a foreign tax credit rather than reporting the net amount, and if the Canada–Nigeria tax convention makes part of it tax-free in Canada, that part is deducted on line 25600.
Nigerians who retire under the Contributory Pension Scheme choose between two ways of drawing their retirement savings account (RSA). TheCable's 2022 explainer sets them out: programmed withdrawal, paid by your pension fund administrator (PFA) from your RSA balance, or a retiree life annuity, bought from a life insurer regulated by NAICOM. An annuity cannot be switched back to programmed withdrawal, the provider can be changed after two years, and payments are guaranteed for ten years. This article is about the annuity route, for someone now living in Canada.
Where it goes on the Canadian return
The CRA's line 11500 page (modified 20 January 2026) tells Canadian residents to report gross foreign pension income received in the year, in Canadian dollars. A life annuity bought with RSA money is the Nigerian equivalent of a pension paid for life, so it belongs here. Paper filers attach a note naming the type of pension and the country.
Two lines can reduce the bill:
- Line 25600. If part of a foreign pension is tax-free in Canada under a tax treaty, that part is deducted here, according to the line 11500 page.
- Line 31400. The same page says you may be able to claim the pension income amount, up to CAD 2,000, depending on the type of pension reported.
Whether the Canada–Nigeria convention gives Nigeria the right to tax the annuity, or limits Canada's right, is a question of the treaty's pensions article. The convention was signed in Abuja on 4 August 1992 and has been in force since 16 November 1999 (Canada Treaty Series 1999/48). Read that article, or ask a preparer who has, before claiming anything on line 25600; see what the Canada–Nigeria treaty covers.
Converting the payments
The line 11500 page says to convert at the Bank of Canada rate for the day you received the pension, or to use the annual average rate if payments came at different times. The Bank of Canada's daily table, as at 23 October 2026, does not include the naira, so neither figure exists for a naira annuity. Folio S5-F4-C1 allows another source if it is widely available, verifiable, independent, market-recognised and used consistently every year. Choose one, note it, and convert each payment or each month's total.
If your benefit is paid in US dollars, the gap disappears: USD is on the Bank of Canada table.
Worked example (illustrative figures only)
| Item | Naira | CAD at example rate |
|---|---|---|
| Monthly annuity | ₦250,000 | CAD 250 |
| Twelve payments in the year | ₦3,000,000 | CAD 3,000 |
| Reported on line 11500 | CAD 3,000 | |
| Nigerian tax deducted, if any | Per insurer's advice | Claimed as foreign tax credit |
The rate of ₦1,000 = CAD 1 is for illustration only. Check: 12 × 250,000 = 3,000,000.
Nigerian tax and the foreign tax credit
Ask the insurer whether it deducts any Nigerian tax from your annuity and, if so, for a deduction advice each year. The line 11500 page is clear on two points: do not subtract foreign tax from the income you report, and the CRA cannot refund taxes paid to another country. If tax is deducted, claim it on line 40500 as a foreign tax credit.
If you chose programmed withdrawal instead
Programmed withdrawal is paid by your PFA from the RSA balance, which stays yours and passes to your beneficiaries on death, according to TheCable's explainer; you can move to an annuity after a year. The monthly payments are still pension income for a Canadian resident and are reported the same way, on line 11500 in Canadian dollars. The difference is risk and flexibility, not the Canadian line they go on. Whichever route you take, ask for one annual statement that shows gross payments and any tax deducted, because that single document makes the Canadian return far easier.
Check the insurer, not only the tax
An annuity is only as good as the insurer paying it. In May 2025 NAICOM suspended two life insurers from writing new retiree life annuities, and PenCom told PFAs not to process new annuities with them until further notice (allAfrica/Vanguard, 22 May 2025). Before choosing, or before your two-year switching window, check the insurer's standing with NAICOM and your PFA. For how the RSA itself is treated, see is a Nigerian RSA taxable in Canada, and for getting the payments here, receiving a Nigerian pension in Canada.
What to check first
- Confirm whether your benefit is a programmed withdrawal from your PFA or an annuity from an insurer.
- Ask the payer for a yearly statement of gross payments and any tax deducted.
- Pick one exchange-rate source for naira and keep using it.
- Read the treaty's pensions article before claiming line 25600.
For background on the Nigerian scheme, see How Nigeria's RSA pension system works.
Where Pryme fits
A Pryme account gives you Nigerian account details to receive the annuity in naira and a USD balance for dollar benefits, with multicurrency balances kept separate. Statements can be generated as verifiable documents through VerifyDoc.ai, useful evidence of gross payments for the CRA. Naira deposits are held by a licensed Nigerian microfinance bank.
Questions people ask
Do I pay Canadian tax on my Nigerian pension?
Yes, if you are resident in Canada. Report the gross amount on line 11500 in Canadian dollars; any treaty-exempt part is deducted on line 25600.
Can I claim the CAD 2,000 pension income amount on a Nigerian annuity?
The CRA's line 11500 page says you may be able to claim up to CAD 2,000 on line 31400, depending on the type of pension. Check eligibility for your case.
What rate do I use to convert naira pension payments?
The Bank of Canada has no naira rate, so use one widely available independent source consistently, as Folio S5-F4-C1 allows.
Can the CRA refund Nigerian tax on my pension?
No. The CRA cannot refund foreign tax. Claim a foreign tax credit on line 40500 for Nigerian tax actually paid.
Sources
- CRA: Line 11500, Other pensions and superannuation (modified 20 Jan 2026) · accessed Oct 2026
- TheCable: Programmed withdrawal, retiree life annuity: what to know about pension payment options (26 May 2022) · accessed Oct 2026
- Publications Canada: Canada–Nigeria tax convention record, Canada Treaty Series 1999/48 · accessed Oct 2026
- CRA: Income Tax Folio S5-F4-C1, Income Tax Reporting Currency (updated 27 Jun 2024) · accessed Oct 2026
- Bank of Canada: Daily exchange rates (table dated 23 Oct 2026) · accessed Oct 2026
- allAfrica (Vanguard): NAICOM suspends two insurers from new retiree life annuities (22 May 2025) · 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.