The National Pension Commission (PenCom) has released guidelines on Foreign Currency (FCY) pension contributions as part of the efforts to revolutionise the country’s pension industry.
The Director General (DG) of PenCom, Ms Omolola Oloworaran, wrote on her official X (formerly Twitter) handle that the regulatory body was embarking on a wave of rolling out new initiatives daily to enable setting higher standards across critical pillars of the pension endeavour.
Ms Oloworaran said that the FYC guidelines provide a pension arrangement under the Contributory Pension Scheme (CPS), for Nigerian living and working abroad.
Also, Nigerian/Foreign workers working in Nigeria, but earning all or part of their remuneration in foreign currencies and other eligible persons are to make their payment in Dollars.
Ms Oloworaran said that the contributors would also access their benefits in dollars, except they elect to do otherwise.
She said that the FCY pension contribution guidelines, which are being issued for the first time, mark a watershed moment for the CPS coverage expansion and financial inclusion drive.
This could offer more lifeline for Nigeria as pension inflows could strengthen the country’s financial systems by bringing in additional capital. Such guarantees that citizens working overseas can still maintain a steady link to social protection. Moreover, foreign pension contributions promote savings culture, reduce the risks associated with local currency, and encourage sustainable income planning across borders.
The PenCom DG also said that the initiative is a bold reform which shows that PenCom cares about the retirement security of all working Nigerians irrespective of geographical borders.