By Atoyebi Nike
The National Pension Commission (PenCom) has introduced new guidelines allowing Nigerians living abroad and dollar earners in Nigeria to save pensions in United States dollars.
The policy, released in September 2025 under the Pension Reform Act 2014, permits Licensed Pension Fund Operators to accept and manage foreign currency contributions while ensuring strict compliance with transparency and anti-money laundering standards.
Eligible participants include Nigerians in the diaspora, expatriates in Nigeria, and citizens earning salaries in dollars through international organisations or foreign companies. All contributions must be made in US dollars, with Retirement Savings Accounts created for participants.
PenCom said contributions will be split into two: 60 per cent available for limited withdrawals before retirement and 40 per cent reserved strictly for retirement. Withdrawals will only be allowed after six months of contribution and no more than twice a year.
Funds will be invested in dollar-denominated assets such as Eurobonds, government securities, and eligible corporate instruments, with strict limits to ensure safety. Retirees can access their pensions in dollars or naira.
The commission added that pension savings and accrued interest remain tax-exempt, though withdrawals made within five years will be subject to applicable tax laws.
