How to Move Your Pension Fund from Nigeria to Another Country Abroad

The Pension Reform Act (PRA) 2014 applies to Nigerians working in Nigeria and Nigerians working in Nigerian Missions abroad, so long as those Nigerians are employees of Nigerian institutions abroad. However, PenCom has issued Guidelines for Cross-Border Arrangements to encourage Nigerians who live abroad to partake in the pension scheme only on personal and voluntary basis. So Nigerians living and working abroad can participate in RSA. Also, PRA 2014 does not primarily cover foreigners working in Nigeria. But foreigner/ expatriates working in Nigeria are entitled to make voluntary contributions on Contributory Pension Scheme.

Here are some of the provisions of PRA 2014 that may answer some of the questions you have especially on what happens to your contributory pension account when you are relocating abroad.

What happens to your retirement saving account RSA when you move abroad?

If you resign from an employment in Nigeria and take up another employment abroad, you are entitled to make arrangements with your new foreign employer to continue remitting your pension to your RSA in Nigeria in line with Guidelines for Cross-Border Arrangements. But if you choose to discontinue with the scheme here in Nigeria or your foreign employer chooses not to remit your pension to your RSA in Nigeria, you can only have access to your RSA upon retirement or attaining 50 yours, whichever comes later. What this means is that, if you travel abroad without moving your RSA account to abroad, while you have not retired or attained 50 years of age, you can't access your account yet.

If you operate voluntary RSA as entrepreneur or self-employed, and decide to move abroad, you can continue to remit your contributory pension to your RSA in Nigeria while abroad in accordance with the Commission`s Guidelines on Cross-Border Arrangements. In event you decide to discontinue with the scheme, you can access your fund upon retirement or attainment of 50 years, whichever that comes later.

For Nigerians returning from abroad, PRA 2014 provides that a Nigerian previously working abroad shall participate in the Contributory Pension Scheme, if upon return to the country, has secured a formal employment in Nigeria. Where the person is not in any employment, he/she may make voluntary contributions under the Contributory Pension Scheme.

Alt: = "pension fund"

Frequently Asked Questions

Can I move my RSA to abroad?

No. You can only continue to fund your account from abroad.

Can I access my RSA fund from Abroad?

Yes, only upon retirement or attainment of 50 years, whichever that comes first, and if your pension fund administrator operates banking system that allows withdrawals in foreign currencies. Again, your pension fund manager can release your pension in a Nigerian naira account you provide, which you can only have access to upon return to Nigeria.

Can I continue with RSA in Nigeria while I am abroad?

Yes, if your new employer abroad agrees to remit your pension to your retirement savings account in Nigeria or you decide to voluntarily fund your retirement savings account domiciled in Nigeria

I am relocating to abroad, can I close my RSA in Nigeria?

No, you can't close your RSA because you are relocating abroad. You can only access your RSA fund upon retirement or reaching 50 years, whichever comes later.

For more inquires and information on these and more, visit PenCom or consult your pension fund administrator. 

Ikechukwu Evegbu

Ikechukwu Evegbu is a graduate of Statistics with over 10 years experience as Data Analyst. Worked with Nigeria's Federal Ministry of Agriculture and Rural Development. A prolific business development content writer. He's the Editor, Business Compiler

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