One key objective of the guidelines on cross-border arrangement (CBA) is to seek to encourage the participation of Nigerians abroad in the contributory pension scheme and assist them to save in Nigeria towards their old age and subsequent return.

The CBA shall involve the conditions and/or the set of guidelines under which Nigerian citizens serving in other countries could participate in the Nigerian pension scheme. The CBA, therefore, makes provision for Nigerians in Diaspora, who may wish to make voluntary contributions as provided in the Nigerian Pension Reform Act 2004.

What will cross-border arrangement do?

The cross-border arrangement establishes a standard set of rules and procedures for foreign nationals and Nigerians resident abroad to participate in the new contributory pension scheme.

It also encourages participation of Nigerians abroad in the contributory pension scheme and assists them to save in Nigeria towards their retirement and subsequent return.

Besides, it provides a platform to accommodate foreigners working in the country in the new scheme, thus guaranteeing a better retirement life for them.

Who qualifies for cross-border arrangement?

Foreign nationals working in Nigeria

Any foreign employee of a company registered in Nigeria shall, at his/her discretion, join the scheme, without considering whether or not he/she has a pension arrangement in his/her home country.

The employee shall inform his employer of his interest to join the scheme.

Nigerians working abroad

Any Nigerian working abroad, who is interested in joining the new pension scheme, shall be allowed to participate by making voluntary contributions.

Nigerian employees of Nigerian institutions with offices abroad shall be allowed to participate in the scheme.

Where the employee joins a retirement benefit scheme abroad, he/she shall be allowed to repatriate his/her accumulated benefits to his/her RSA with a PFA in Nigeria.

Nigerian employees moving abroad

Any Nigerian employee already contributing into his/her RSA going on transfer to another country or leaving his/her employment in the country for another employment abroad, shall notify his/her PFA through his/her previous employer.

Pursuant to the above, the employee shall indicate whether he/she intends to send voluntary contributions into the RSA.

Nigerians Returning from Foreign Employments

A Nigerian previously working abroad shall be part of the scheme if upon his/her return to the country, secures an employment.

Where the Nigerian wants to repatriate his accrued benefits into his RSA, he/she shall obtain anti-money laundry clearance/approval from relevant authorities in the home country (Nigeria) and the host country (where he was previously working).