The Federal Government of Nigeria has started paying Additional Exit Benefits to retirees of Treasury-funded Ministries, Departments and Agencies (MDAs). According to the National Pension Commission (PenCom), N1.1 billion has been paid to 175 retirees who retired from the Federal Public Service between January 1 and August 31, 2026. This payment is part of the Federal Government Exit Benefit Scheme (EBS), approved by the Federal Executive Council and effective from January 1, 2026.
The Exit Benefit Scheme provides an additional financial benefit to federal government employees at retirement, alongside their pension benefits under the Contributory Pension Scheme (CPS). Under the scheme, federal civil servants who have served for at least 10 years are entitled to an Exit Benefit equivalent to 100 per cent of their total annual emolument at retirement. PenCom described the commencement of payments as another milestone in the development of the CPS.
The National Pension Commission said efforts are being intensified to provide retirees with benefits beyond what they accumulated in their Retirement Savings Accounts (RSAs) during their years of service. The commission noted that the Federal Government had taken the lead in providing additional benefits to its retirees, adding that the initiative could serve as a model for other employers.
For the implementation of the scheme, N32.90 billion was provided in the 2026 Appropriation. PenCom said the Federal Government had so far released N12.3 billion into the dedicated Exit Benefit Scheme Account maintained with the Central Bank of Nigeria (CBN). The commission is working with the Office of the Head of the Civil Service of the Federation (OHCSF), the Office of the Accountant General of the Federation (OAGF), Pension Fund Administrators (PFAs) and other stakeholders to facilitate the processing and payment of the benefits.
According to PenCom, retirees are required to submit relevant documents, including their clearance letters and recent payslips, to their Pension Fund Administrators. The PFA then verifies the retiree’s records and forwards the information to PenCom for further validation and approval. Once approved, the Exit Benefit is credited to the retiree’s RSA through the PFA, and subsequently transferred to the retiree’s designated salary bank account.
PenCom stressed that the Exit Benefit is an additional payment and does not replace the regular benefits retirees are entitled to receive from their RSA balances. The commission said the scheme would provide retiring federal civil servants with additional financial support at a significant stage of their lives and strengthen efforts to ensure adequate financial resources for workers after leaving active service.
The maiden payment of N1.1 billion to 175 retirees marked the official commencement of the Additional Exit Benefits Scheme for federal government retirees. PenCom reaffirmed its commitment to working with relevant stakeholders to ensure the smooth implementation of the scheme and prompt payment of Exit Benefits to eligible federal retirees. Subsequent retirees of Treasury-funded MDAs who meet the eligibility requirements would be entitled to the additional benefit equivalent to 100 per cent of their total annual emolument at retirement.
Key points
- The Federal Government has paid N1.1 billion exit benefits to 175 federal retirees under the new Exit Benefit Scheme.
- The Exit Benefit Scheme provides an additional financial benefit to federal government employees at retirement, alongside their pension benefits under the Contributory Pension Scheme (CPS).
- The scheme is part of the Federal Government's efforts to ensure adequate financial resources for workers after leaving active service.
