Governance
FG Boosts Retirees’ Finances With ₦1.1bn Exit Benefits
The Federal Government has commenced the payment of additional retirement benefits to workers who retired from Treasury-funded Ministries, Departments and Agencies (MDAs), with 175 retirees receiving about ₦1.1 billion so far.
The payment covers Federal Public Service workers who retired between January 1 and August 31, 2026, under the Federal Government Exit Benefit Scheme (EBS).
Approved by the Federal Executive Council and effective from January 1, 2026, the scheme provides eligible federal civil servants with an additional payment at retirement, separate from pension benefits received under the Contributory Pension Scheme (CPS).
Under the scheme, a federal civil servant who has completed at least 10 years in service is entitled to an Exit Benefit equivalent to 100 per cent of their total annual emolument at the point of retirement.
The commencement of the payments means eligible retirees from Treasury-funded MDAs will receive the additional benefit on top of whatever entitlement they have accumulated in their Retirement Savings Accounts (RSAs) during their years of service.
The government made provision for the scheme in the 2026 Appropriation Act, allocating ₦32.90 billion for its implementation.
Of the approved amount, the Federal Government has so far released ₦12.3 billion into a dedicated Exit Benefit Scheme Account domiciled with the Central Bank of Nigeria (CBN).
The development is expected to provide additional financial support to retiring federal civil servants as they leave paid employment and begin life in 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 eligible retirees receive their payments.
The commission said the payment process was designed to provide easier access for retirees while ensuring proper verification of their records before funds are released.
Under the process, retirees are required 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.
Following approval, the Exit Benefit will be paid into the retiree’s RSA through the PFA, which 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 provides eligible federal civil servants retiring from Treasury-funded MDAs with an additional source of income at retirement, beyond the benefits available from their accumulated pension savings.
PenCom said the maiden payment of about ₦1.1 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 added that the Federal Government’s decision to provide an additional retirement benefit could 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 relevant government agencies, PFAs and other stakeholders to ensure that benefits are processed and paid to eligible retirees without unnecessary delays.