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The short answer
Once you live in Nigeria and are a non-resident of Canada, the CRA withholds 25% non-resident tax from RRSP withdrawals unless a treaty reduces it, and Service Canada deducts 25% from CPP and OAS payments to countries in its "All other countries" row, which covers Nigeria. CPP can still be claimed and paid while you live abroad. Ask the CRA whether any treaty rate applies before you plan around a lower figure.
Many Nigerians who spent years working in Canada come home with two kinds of retirement money: a Registered Retirement Savings Plan (RRSP) they paid into themselves, and Canada Pension Plan (CPP) credits built up through payroll. Both can follow you to Nigeria, but once you stop being a Canadian resident the tax rules change. This guide sets out what the Canada Revenue Agency (CRA) and Service Canada say on their own pages, what that means in naira terms, and the points you should confirm before you move money.
The headline rule: 25% non-resident tax
Canada deducts a flat non-resident tax from most pension-type payments made to people who live abroad. On RRSP withdrawals, the CRA's page on tax rates on withdrawals (modified 29 January 2026) says the withholding for non-residents is 25% "unless reduced by a treaty", and it refers readers to Information Circular IC76-12R8 for treaty rates.
For CPP and Old Age Security (OAS), Service Canada's page on taxes on foreign and Canadian pensions (modified 8 October 2026) says the non-resident tax is 25% unless a tax treaty between Canada and your country of residence reduces or removes it, and that it is deducted automatically from each payment. The page carries a country table. Nigeria is not listed in it, so the row for "All other countries" applies, and that row shows 25% for OAS, for CPP or QPP pensions and for CPP or QPP death benefits.
RRSP withdrawals before and after you leave
While you are still a Canadian resident, an RRSP withdrawal is taxed through withholding at these rates, according to the CRA page (outside Quebec):
| Amount withdrawn | Withholding while resident | Withholding once non-resident |
|---|---|---|
| Up to $5,000 | 10% | 25% |
| $5,000 to $15,000 | 20% | 25% |
| Over $15,000 | 30% | 25% |
Quebec residents pay 5%, 10% or 15% federal withholding plus Quebec's own provincial tax. The resident rates are only withholding: the withdrawal still goes on your Canadian return and is taxed at your marginal rate, so the final bill can be higher or lower. For a non-resident, the 25% is usually the end of the Canadian tax on that payment, though people with other Canadian income sometimes file a return to settle the position. Check with the CRA or a cross-border adviser if that applies to you.
Worked example (labelled)
Example: Ngozi has moved back to Lagos and is now a non-resident of Canada. She withdraws CAD 20,000 from her RRSP in one go.
- Non-resident tax at 25%: CAD 20,000 × 0.25 = CAD 5,000 withheld.
- Amount paid out: CAD 20,000 − CAD 5,000 = CAD 15,000.
- Had she taken the same lump sum while still resident (outside Quebec), withholding would have been 30%, or CAD 6,000, but the final tax would then have depended on her full-year income on her Canadian return.
The example shows why timing matters. Some people spread withdrawals across years; others leave the RRSP invested and draw later. There is no single right answer, and it depends on your total income in both countries.
CPP and OAS paid to you in Nigeria
CPP is earned through contributions, so living abroad does not cancel it. You apply when you become eligible. Service Canada's "before you apply" page (modified 9 February 2026) says that if you write from outside Canada you should send your letter to the regional office of the province where you last lived. Its phone line for callers outside Canada and the US is +1 613 957 1954, and it accepts collect calls. Have your Social Insurance Number or CPP account number ready.
Every payment then has 25% deducted at source, as described above. Each year Service Canada issues an NR4 slip showing what you were paid and what was withheld. According to its tax page, slips are available online from 1 February and mailed in February; if you have not received one by 28 February, contact International Social Security Agreements. Keep NR4 slips: Nigerian tax authorities, banks and visa officers may ask how the income was taxed.
Worked example (labelled)
Example: Tunde's CPP retirement pension is CAD 800 a month. Non-resident tax of 25% is CAD 200, so CAD 600 is paid each month, or CAD 7,200 over a year (CAD 600 × 12). The naira value depends on the exchange rate on the day you convert, which changes daily.
OAS has its own residence rules
OAS is based on years lived in Canada rather than contributions, and there are separate rules on whether it can be paid abroad. OAS is also subject to a recovery tax for higher earners; the Service Canada page gives a net world income threshold of $93,454 for the 2025 tax year as an example. Check your own eligibility with Service Canada before planning around OAS.
The Nigerian side of the picture
Once you are back for 183 days or more in a year, or have your family or economic base in Nigeria, you are likely to be tax resident in Nigeria and taxable on worldwide income. Our guide on when you become tax resident again sets out the tests. PwC's Nigeria tax summary (last reviewed 29 May 2026) says certain foreign income such as dividends, interest, rent and royalties brought in through government-approved channels remains exempt; it does not list pensions in that group. How Canadian pension income is treated in Nigeria, and whether credit is given for the Canadian tax already withheld, is a question to put to the Nigeria Revenue Service (NRS, which replaced FIRS) or a tax adviser. For the treaty background, see Nigeria and Canada tax facts.
What to check first
- Confirm the date you became non-resident for Canadian tax; it decides which withholding applies.
- Ask the CRA whether any treaty rate applies to you as a Nigeria resident, and get the answer in writing.
- If you are planning a large RRSP withdrawal, compare the resident and non-resident outcomes before you leave.
- Update your mailing address with Service Canada and sign up to view NR4 slips online.
- Keep every NR4 and bank record of the money arriving in Nigeria.
Where Pryme fits
A Pryme Personal Account can be opened from any country and holds NGN, USD, GBP and EUR, with local account details for each. Money stays in the currency it arrives in, and you convert with Swap only when you choose, with the rate shown first and the fee on its own line. Pryme does not hold Canadian dollars, so CPP or RRSP money would first be paid out by your Canadian provider. See multicurrency accounts, and for moving money home, sending money to Nigeria from Canada.
Questions people ask
Can I collect my CPP if I move back to Nigeria?
Yes. CPP is based on contributions, so you can apply from abroad. Service Canada deducts non-resident tax from each payment; Nigeria falls under the 25% "All other countries" row on its tax page.
How much tax is taken from an RRSP withdrawal when I live in Nigeria?
The CRA says non-residents have 25% withheld unless a treaty reduces it. We found no Canadian page showing a lower rate for Nigeria, so ask the CRA before you withdraw.
Do I need to file a Canadian tax return after leaving?
Often the 25% withholding settles the Canadian tax on these payments, but people with other Canadian income may need to file. Check your situation with the CRA.
What is an NR4 slip?
It is the annual slip showing pension payments made to a non-resident and the tax withheld. Service Canada makes it available online from 1 February each year.
Sources
- CRA: Tax rates on RRSP withdrawals (modified 29 Jan 2026) · accessed Oct 2026
- Service Canada: Taxes on foreign and Canadian pensions and benefits (modified 8 Oct 2026) · accessed Oct 2026
- Service Canada: CPP international, what you need before you start (modified 9 Feb 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, individual (reviewed 29 May 2026) · accessed Oct 2026
- Canada-Nigeria tax agreement record, Publications.gc.ca · 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.