FG Begins Payment of ₦1.1bn Exit Benefits to 175 Retirees
By Patience Ikpeme
The Federal Government has started paying additional retirement benefits to workers who retired from Treasury-funded Ministries, Departments and Agencies (MDAs), with 175 retirees receiving about N1.1 billion so far.
The payment, which covers Federal Public Service workers who retired between January 1 and August 31, 2026, is being made under the Federal Government Exit Benefit Scheme (EBS).
The scheme, approved by the Federal Executive Council and effective from January 1, 2026, provides an additional payment to eligible federal civil servants at retirement, separate from the pension benefits they receive under the Contributory Pension Scheme (CPS).
Under the arrangement, a federal civil servant who has completed at least 10 years in service is entitled to an Exit Benefit equal to 100 per cent of his or her total annual emolument at the point of retirement.
The commencement of the payments means eligible retirees from Treasury-funded MDAs will now receive this additional benefit on top of whatever entitlement they have accumulated in their Retirement Savings Accounts (RSAs) during their working years.
The government has made provision for the scheme in the 2026 Appropriation Act, allocating N32.90 billion for its implementation.
Of this amount, the Federal Government has so far released N12.3 billion into a dedicated Exit Benefit Scheme Account held with the Central Bank of Nigeria (CBN).
The development is expected to provide additional financial support to retiring federal civil servants at a time when they are leaving paid employment and beginning life on retirement.
The National Pension Commission (PenCom), which is supporting the implementation of the scheme, said it was 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 ensure that eligible retirees receive their payments.
The commission said the payment process had been designed to combine easier access for retirees with proper verification of their records before funds are released.
Under the process, retirees are expected to submit relevant documents, including their clearance letters and recent payslips, to their respective PFAs.
The PFAs will verify the retirees’ records before forwarding the information to PenCom for further checks and approval.
After approval, 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 nominated salary bank account.
The Exit Benefit is not a replacement for the retiree’s existing pension or RSA balance. Rather, it is an additional payment provided by the Federal Government under the new scheme.
The introduction of the scheme therefore gives eligible federal civil servants who retire from Treasury-funded MDAs an additional source of income at retirement, beyond the benefits available from their accumulated pension savings.
PenCom said the maiden payment of about N1.1 billion to 175 retirees marked the formal commencement of the Federal Government’s additional Exit Benefits for its retirees.
Consequently, federal civil servants retiring from Treasury-funded MDAs after the commencement of the scheme are eligible for the additional benefit, provided they meet the conditions, including the minimum 10-year service requirement.
The commission said the scheme was part of efforts to improve the benefits available to workers under the CPS at retirement.
It said the Federal Government’s decision to provide an additional retirement benefit could also serve as an example for other employers considering ways to strengthen the financial security of their workers after active service.
PenCom said it remained committed to working with the relevant government agencies, PFAs and other stakeholders to ensure that the benefits were processed and paid to eligible retirees without unnecessary delays.
