The Federal Government has begun paying additional retirement benefits to workers who exited Treasury-funded Ministries, Departments and Agencies between January and August 2026, with 175 retirees receiving about N1.1 billion so far.
The payments are being made under the Federal Government Exit Benefit Scheme, which was approved by the Federal Executive Council and became effective on January 1, 2026.
The National Pension Commission (PenCom), which announced the commencement in a statement, said the scheme provides an additional financial benefit to eligible federal civil servants on retirement, separate from their existing pension benefits under the Contributory Pension Scheme (CPS).
Under the new arrangement, federal civil servants who have completed at least 10 years of service 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 significant development for the CPS, noting that the initiative is designed to provide retirees with additional financial support beyond the funds accumulated in their Retirement Savings Accounts (RSAs) during their years of service.
The 2026 Appropriation Act provided N32.90 billion for the implementation of the scheme. Of that amount, the Federal Government has so far released N12.3 billion into a dedicated Exit Benefit Scheme Account maintained with the Central Bank of Nigeria.
PenCom said it is coordinating with the Office of the Head of the Civil Service of the Federation, the Office of the Accountant General of the Federation, Pension Fund Administrators and other stakeholders to ensure that eligible retirees receive their benefits.
How retirees will receive the benefit
Under the payment process, retirees are required to submit relevant documents, including their clearance letters and recent payslips, to their Pension Fund Administrators (PFAs).
The PFAs will verify the retirees’ records before forwarding the information to PenCom for further validation and approval.
Once approved, the Exit Benefit will be paid into the retiree’s RSA through the PFA. The PFA will then transfer the full amount to the retiree’s designated salary bank account.
PenCom stressed that the Exit Benefit is an additional payment and does not replace or reduce the regular benefits retirees are entitled to receive from their RSA balances.
The commission said the maiden payment signals the formal commencement of the scheme, meaning subsequent retirees from Treasury-funded MDAs who meet the eligibility requirements will also qualify for the additional benefit.
The commission said the initiative would provide greater financial support to federal retirees as they transition out of active service and added that it would continue working with relevant government institutions to ensure the scheme operates smoothly and payments are made promptly.
