The Federal Government has begun payments of Additional Exit Benefits to retirees of Treasury‑funded Ministries, Departments and Agencies (MDAs).
Approximately ₦1.1 billion has already been disbursed to 175 retirees who left the Federal Public Service between 1 January and 31 August 2026.
The payments are being made under the Federal Government Exit Benefit Scheme (EBS), approved by the Federal Executive Council and effective from 1 January 2026.
The Scheme provides an additional financial benefit to retiring Federal Government employees alongside their pension under the Contributory Pension Scheme (CPS). Under the EBS, federal civil servants with at least 10 years’ service are entitled to an Exit Benefit equal to 100 percent of their total annual emolument.
The commencement of payments is a milestone for the CPS and reflects intensified efforts to deliver benefits beyond what retirees accumulated in their Retirement Savings Accounts.
The Federal Government’s initiative sets an example other employers may wish to follow.
To support implementation, the 2026 Appropriation included ₦32.90 billion for the Scheme. So far, ₦12.3 billion has been released into the dedicated Exit Benefit Scheme account maintained at the Central Bank of Nigeria (CBN).
The National Pension Commission (PenCom) is supporting implementation by coordinating 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 processing and payments.
How the payment process works
Retirees will submit required documents, including a clearance letter and recent payslips, to their PFA.
The PFA will verify the records and forward the information to PenCom for validation and approval.
Once approved, the Exit Benefit is credited to the retiree’s Retirement Savings Account (RSA) via the PFA, and the PFA transfers the full amount to the retiree’s designated salary bank account.
This Exit Benefit is additional to the usual withdrawals from RSA balances. An added benefit at retirement.
The initial payment of ₦1.1 billion to 175 retirees confirms that the Scheme is operational. All subsequent FGN retirees from Treasury‑funded MDAs are eligible for the additional Exit Benefit equal to 100 percent of their total annual emolument, which will bolster the financial wellbeing of public service retirees.
PenCom remains committed to working with all relevant stakeholders to ensure smooth implementation and prompt payment of Exit Benefits to eligible retirees.