The Federal Government has commenced payment of additional exit benefits to eligible federal civil servants, with ₦1.1 billion already paid to 175 retirees under the new scheme.
The Federal Government has commenced the payment of additional exit benefits to eligible retirees of Treasury-funded Ministries, Departments and Agencies (MDAs).
The National Pension Commission (PenCom) disclosed this in a statement issued in Abuja on Friday, saying about ₦1.1 billion had so far been paid to 175 retirees who exited the Federal Public Service between January 1 and August 31, 2026.
The payments were made under the Federal Government Exit Benefit Scheme, approved by the Federal Executive Council (FEC), to provide eligible federal civil servants with additional financial benefits alongside their regular retirement benefits under the Contributory Pension Scheme (CPS).
The commencement of the scheme marks a significant development in the Federal Government’s efforts to provide additional financial support for civil servants after retirement. PenCom had previously worked with the Office of the Head of the Civil Service of the Federation on introducing a gratuity arrangement for Treasury-funded federal workers under the CPS.
Under the new scheme, eligible federal civil servants with at least 10 years of service are entitled to an additional exit benefit equivalent to 100 percent of their total annual emolument.
According to PenCom, the Federal Government allocated ₦32.90 billion in the 2026 Appropriation for the implementation of the Additional Exit Benefits Scheme.
The commission said ₦12.3 billion had so far been released into the dedicated exit benefit account maintained with the Central Bank of Nigeria (CBN).
PenCom is supporting the implementation of the scheme in collaboration 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 (PFAs) and other relevant stakeholders.
The collaboration is aimed at facilitating the verification, processing and prompt payment of the benefits to eligible retirees.
Under the payment process, retirees are required to submit relevant documents, including clearance letters and recent payslips, to their respective PFAs.
The PFAs will verify the retirees’ records before forwarding the relevant information to PenCom for further validation and approval.
Following approval, the additional exit benefit is credited to the retiree’s Retirement Savings Account (RSA) through the PFA, after which the full amount is transferred to the retiree’s designated salary bank account.
PenCom stressed that the payment is an additional benefit and does not replace regular retirement benefits payable from retirees’ RSA balances.
Under the CPS, employers may provide additional severance or terminal benefits above statutory pension benefits, subject to applicable terms and conditions. PenCom also has an established framework for additional benefits schemes under the Contributory Pension Scheme.
The maiden payment of ₦1.1 billion to 175 retirees signifies the official commencement of the Federal Government Exit Benefit Scheme for retirees of Treasury-funded MDAs.
Consequently, subsequent eligible retirees are expected to receive an additional exit benefit equivalent to 100 percent of their total annual emolument.
PenCom said the initiative was designed to improve the financial wellbeing of retired public servants and ensure they have additional financial support after leaving active service.
The commission added that it would continue to work with relevant government agencies, PFAs and other stakeholders to ensure the smooth implementation and prompt payment of the benefits to eligible retirees.
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