PenCom issues new directive on foreign currency pension contributions

The National Pension Commission (PenCom) has introduced fresh guidelines to strengthen oversight of the Contributory Pension Scheme (CPS), mandating pension fund administrators (PFAs) and pension fund custodians (PFCs) to report foreign currency pension contributions exceeding $10,000 to the Nigeria Financial Intelligence Unit (NFIU) within 24 hours.

The directive, contained in the Guidelines on Foreign Currency Pension Contributions issued in September 2025, is designed to expand participation in the CPS to Nigerians in the diaspora and residents earning in foreign currency, while safeguarding the scheme from potential abuse.

According to PenCom, the new rules align with Section 3(1) of the Money Laundering (Prevention and Prohibition) Act 2022. PFAs and PFCs must provide full disclosure for any qualifying transaction, including the contributor’s name, address, amount transferred, and stated purpose.

The commission noted that the framework is part of broader efforts to deepen pension coverage, encourage foreign currency inflows into the pension system, and reinforce compliance with anti-money laundering and counter-terrorism financing standards.