Nigerians in the diaspora can make Cross-Border Pension contributions under the Contributory Pension Scheme (CPS). A Nigerian working abroad who wants to participate in the CPS might do so by depositing funds into his RSA account.
In addition, foreign nationals working in Nigeria can also be allowed to participate in the CPS if they so desire, according to the new pension era.
✓ Nigerians in Diaspora
Nigerians in the diaspora can be divided into three broad categories:
1. Those working for multinationals in Nigeria and transferred or on secondment to a foreign country.
2. Those living and working abroad with a foreign or Nigerian entity.
3. Those returning from foreign employment.
1) For Nigerians working with multinationals in Nigeria but are now moving abroad due to transfer or secondment, chances are that they already have an RSA opened with a PFA. In this case, it is required to notify the PFAs of the new arrangement and also instruct the PFAs to freeze their existing RSAs until they return from abroad to continue their contributory pension contributions.
However, If they wish to make contributions while still abroad, they are to indicate their willingness to do so with their PFA also. This means that, while they are abroad, they can participate in the CPS by making only Voluntary Contributions into their RSAs in Nigeria.
2) The same is true for Nigerians who live and work outside of Nigeria but want to participate in the CPS. After opening a Retirement Savings Account (RSA) with any PFA of choice, they can make a Voluntary Contribution. However, if the multinational entity is a Nigerian company, such as Dangote Cement in Ivory Coast or Globacom in Ghana, a Nigerian can repatriate his pension contributions with the overseas pension administrator into his RSA in Nigeria if the oversea pension authority allows it. However, if this is not allowed, the pension contributions will be treated as Voluntary Contribution when it is made.
3) Nigerians returning from abroad are permitted to open an RSA into which their contributions will be made if they do not have one prior to traveling or while abroad.
They can also repatriate their pension entitlements in their foreign pension arrangement with an oversee pension scheme if the foreign pension arrangement allows this.
Please note that all contributions made into the RSA must be denominated in NAIRA. Therefore, all remittances from abroad in foreign currencies would firstly be translated to Naira equivalents before they are paid into the RSA of the contributor.
To this end, the PFA/PFCs have domiciliary accounts opened for foreign currency remittances which are converted at the prevailing exchange rate before payment into the contributors’ RSA. Also, any foreign remittance of less than Five Thousand Naira is not allowed.
✓ Foreign Nationals
Participation in the Nigerian CPS is totally voluntary for foreign nationals working in Nigeria. It is entirely up to them whether or not they wish to join. As a result, any foreign national who chooses to contribute to the Nigerian CPS can do so through the Voluntary Contribution scheme. He or she might approach any PFA of his or her choosing to form an RSA in order to deposit his or her Voluntary Contributions.