In furtherance of the comprehensive reform engineering in the implementation of the “Pension Revolution 2.0” recently announced by the National Pension Commission (PenCom), the Commission has released Guidelines on Foreign Currency (FCY) Pension Contributions.
With this, the road is cleared for diaspora participation and foreign currency remittances under the Contributory Pension Scheme (CPS) following the guidelines provided by PenCom, as announced by the Director General, Ms. Omolola Oloworaran.
“This Guideline establishes the regulatory framework for Licensed Pension Fund
Operators (LPFOs) to accept, manage, and invest foreign currency (FCY) contributions under the Contributory Pension Scheme (CPS). Issued pursuant to the powers of the National Pension Commission (PenCom) under the Pension Reform Act 2014, it is designed to deepen CPS participation, particularly by Nigerians in the diaspora and other eligible contributors, while safeguarding the integrity and transparency of the pension system.
“The provisions address scope, eligibility, operational requirements, and governance standards for FCY contributions. They align with global best practices on foreign currency pension administration, ensuring robust risk management, clear accountability, and effective oversight”, according to the preamble of the guidelines.
The objectives of the Guideline are to: Expand access to the CPS for Nigerians earning in foreign currency, including those living abroad; Provide a secure and transparent mechanism for making and managing FCY contributions; Strengthen the investment potential of pension funds through diversified currency inflows; and to Ensure compliance with local regulatory requirements and international
standards.
As earlier announced by the Director General, @Omololabo, PenCom is embarking on a wave of rolling out new regulations/initiatives daily, setting higher standards across critical pillars of the Pension endeavour.
The FCY Pension Contributions Guidelines provides a pension arrangement under the CPS, for Nigerians living & working abroad and Nigerian/Foreign workers working in Nigeria but earning all or part of their remuneration in foreign currency.
The pension contributions by Diaspora Nigerians and other eligible persons are to be made in Dollar. In the same vein, contributors will also access their benefits in Dollar except they elect to do otherwise.
The FCY Pension Contributions Guidelines, which are now being issued for the first time, mark a watershed moment for the CPS coverage expansion and financial inclusion drive.
It is a bold reform which shows that PenCom cares about the retirement security of all working Nigerians irrespective of geographical borders, PenCom stressed.
