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The short answer
For most Nigerians working in the UK, a UK workplace pension does more with each pound: your employer must pay in at least 3% of qualifying earnings and the government adds tax relief, worth 20% at basic rate. A Nigerian RSA has no UK tax relief, but keeps savings in Nigeria, now in dollars if you choose, and can be drawn from age 50. Many people do both, for different reasons.
The UK side: what you get for each pound
If you are 22 or over, under State Pension age, earn at least £10,000 a year and usually work in the UK, GOV.UK says your employer must enrol you in a workplace pension. The minimum total contribution is 8% of qualifying earnings, between £6,240 and £50,270 a year, of which the employer pays at least 3%. You can opt out, but you then give up the employer's money.
Tax relief adds more. In a relief-at-source scheme, the provider claims 20% from the government and adds it to your pot. Higher-rate taxpayers claim a further 20% (or 25% at 45%) through Self Assessment. Relief applies to contributions of up to 100% of your earnings, within an annual allowance that GOV.UK gives as £60,000, with unused allowance carried forward from the previous three years.
Worked example
An example only. On £30,000 a year, qualifying earnings are £30,000 − £6,240 = £23,760.
| Contribution | Per year |
|---|---|
| Employer minimum at 3% | £712.80 |
| Employee share at 5%, including tax relief | £1,188.00 |
| Of which your net cost (80% of £1,188) | £950.40 |
| Total going into the pension | £1,900.80 |
For £950.40 out of your pay, £1,900.80 goes into the pension, roughly double. No Nigerian scheme can match that, because the employer and the government are paying the difference.
The Nigerian side: what an RSA offers
Nigerians abroad can now contribute to an RSA in US dollars under PenCom's September 2025 guidelines, into a Foreign Currency Dollar Fund. Contributions are split 60% contingent and 40% retirement, withdrawals are allowed from six months after paying in (at most twice a year), and retirement benefits start at 50, paid in dollars. Contributions are not taxed in Nigeria, though income is taxed if withdrawn within five years.
There is no employer contribution unless you work for a Nigerian employer, and the GOV.UK relief rules are written for UK pension schemes, so a dollar RSA contribution comes entirely from your taxed income.
Comparing the two
| UK workplace pension | Nigerian RSA (dollar route) | |
|---|---|---|
| Employer money | At least 3% of qualifying earnings | None unless you have a Nigerian employer |
| Tax relief | 20% added; more for higher-rate payers | None in the UK |
| Currency | Pounds | US dollars (naira on request) |
| Earliest access | Usually 55 (GOV.UK) | 50; contingent portion after six months |
| Tax when drawn | Taxed in the UK, even if you retire abroad | Taxed in Nigeria under the treaty |
Currency risk cuts both ways
Saving in naira while your bills are in pounds has cost many people dearly as the naira has fallen. The dollar route lowers that risk but does not remove currency risk altogether: if you retire in the UK, you still convert dollars back to pounds. If you retire in Nigeria, the reverse applies, and a pension in pounds converted to naira month by month can work in your favour when the naira is weak. Match the currency of your savings to the currency of the life you expect to lead. Our guide to currency risk on naira investments explains this in more detail.
Where each one makes sense
- Stay in your workplace scheme at least up to the level your employer matches. Opting out gives up free money.
- Add to a UK pension or SIPP if you have spare income and expect to stay in the UK; see whether a SIPP is worth it.
- Consider an RSA if you plan to retire in Nigeria, want access before 55, or want savings at home under a regulated Nigerian scheme. The dollar route reduces naira exposure.
- Keep a separate emergency fund outside both; neither is designed for quick access, and drawing early from either comes with conditions that may not fit the timing of a real emergency.
If you plan to go home
A UK pension does not have to be moved to be useful in Nigeria. Article 18 of the UK–Nigeria treaty makes pensions for past employment taxable only in the country they come from, so a UK pension paid to you in Lagos is taxed in the UK. Moving a UK pension abroad is possible only to a recognised overseas scheme and can trigger a 25% charge; see transferring a UK pension to Nigeria. If you returned home after working in the UK, check also voluntary National Insurance from Nigeria.
This is general information, not financial advice. Pension decisions are long-term; a regulated adviser can model your own numbers.
Where Pryme fits
Pryme is not a pension provider. A Pryme account can hold pounds, dollars and naira side by side, which helps if you pay into a dollar RSA or support family in naira, and naira savings for nearer goals can sit in a Savings Box.
Questions people ask
Should I opt out of my UK workplace pension to save in Nigeria?
Opting out means giving up your employer's contribution, at least 3% of qualifying earnings, and tax relief. For most people that costs more than any benefit of saving in Nigeria instead.
Do I get UK tax relief on RSA contributions?
Not under the GOV.UK relief rules, which cover UK pension schemes. RSA contributions come from income already taxed.
Can I contribute to my RSA in dollars from the UK?
Yes. PenCom's September 2025 guidelines allow voluntary US dollar contributions from Nigerians abroad, paid from a Non-Resident Nigerian Ordinary Account.
When can I take money out of each?
A UK workplace pension usually from 55, per GOV.UK. A Nigerian RSA from retirement or 50, whichever is later, with contingent withdrawals on voluntary and dollar contributions earlier.
Sources
- GOV.UK: Workplace pensions · accessed Oct 2026
- GOV.UK: Tax on your private pension contributions, tax relief · accessed Oct 2026
- GOV.UK: Tax on your private pension contributions, annual allowance · accessed Oct 2026
- PenCom: Guidelines on Foreign Currency Pension Contributions (Sep 2025) · accessed Oct 2026
- UK–Nigeria Double Taxation Convention 1987 (GOV.UK PDF) · 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.