PenCom Unveils Dollar-Based Pension Guidelines, Experts Cheer as Diaspora Demands Oversight

The PenCom’s Director-General, Ms. Omolola Oloworaran

The National Pension Commission (PenCom) has broken new ground in Nigeria’s pension sector with the release of its first-ever Foreign Currency (FCY) Pension Contribution Guidelines, a key reform under the banner of Pension Revolution 2.0.

Unveiled by PenCom’s Director-General, Ms. Omolola Oloworaran, the guidelines allow Nigerians living abroad, as well as foreign and local employees earning in dollars, to contribute directly into their pension accounts in U.S. dollars. Contributors will also have the choice of withdrawing their benefits in dollars, unless they opt for naira.

Ms. Oloworaran described the initiative as a “watershed moment for pension coverage expansion and financial inclusion.” She stressed that the reform was designed to protect all Nigerian workers—whether at home or abroad—ensuring retirement security that matches global realities.

Diaspora Reaction: Applause with Caution

While the initiative has been widely welcomed, diaspora groups have urged PenCom to back its bold vision with robust oversight.

The Nigerian Diaspora Organization (NIDO) Europe chapter called the guidelines “a long-overdue reform” but warned that contributors would be watching closely. “Transparency, clear reporting, and exchange rate management are non-negotiable if this scheme is to build long-term trust,” said Mrs. Adaeze Onuoha, a UK-based healthcare professional.

In North America, the Nigerian-American Business Forum representative, wale Jamiu Obadina  praised the reform as a confidence booster but highlighted the need for safeguards. “Dollar pensions are a brilliant idea, but contributors must be reassured that funds will not be eroded by poor oversight or hidden charges,” the group noted.

Industry Analysts and PFAs Respond

Financial analysts see the reform as a win for both individuals and the economy, Celestine Ukpong , a Lagos-based economist, said the FCY guidelines could “create a steady stream of foreign inflows, deepen pension assets, and boost Nigeria’s forex stability.”

According to the report, Pension Fund Administrators (PFAs) also applauded the development. Leadway Pensure called it a “game-changer that positions the Contributory Pension Scheme as a global retirement platform.” Similarly, Stanbic IBTC Pension Managers argued that the initiative would attract high-earning professionals in oil, gas, and technology, sectors where dollar salaries are common.

What You Need to Know: PenCom’s FCY Pension Guidelines

• Who Can Contribute?
  Nigerians living and working abroad, expatriates in Nigeria, and Nigerians earning all or part of their salary in foreign currency.
• Currency of Contribution:
  Contributions will be made in U.S. dollars.
• Access to Benefits:
  Retirees can withdraw their pensions in dollars, unless they opt for payment in naira.
• Why It Matters:
  Expands the Contributory Pension Scheme (CPS) to the diaspora, strengthens financial inclusion, and taps into over $20 billion in annual diaspora remittances.
• Risks Highlighted:
  Diaspora groups stress the need for oversight, transparency, and FX risk management to protect contributors’ confidence.

A Defining Reform

The FCY pension contribution scheme is the latest in a series of daily reforms under Pension Revolution 2.0, which PenCom says is aimed at raising standards across critical pillars of the industry.

For now, optimism remains high, but stakeholders insist that only effective oversight, transparency, and strong regulatory discipline will determine whether this bold reform delivers on its promise.

As Ms. Oloworaran emphasized during the unveiling: “Stronger pensions will always mean a stronger Nigeria.”

With its global outlook, the reform could mark a turning point in Nigeria’s pension system, making it not only inclusive but also competitive on an international scale.

PenCom DG Omolola Oloworaran unveils Foreign Currency Pension Contribution Guidelines, allowing Nigerians abroad and dollar earners to save and withdraw in USD. Diaspora groups welcome the reform but demand robust oversight to ensure transparency and FX risk management.