Nigeria has commenced payment of additional exit benefits to retiring civil servants under the Federal Government Exit Benefit Scheme, with about one point one billion naira already paid to 175 retirees.
The beneficiaries are retirees of Treasury-funded Ministries, Departments and Agencies who exited the Federal Public Service between January 1 and August 31, 2026.
The scheme, approved by the Federal Executive Council and effective from January 1, 2026, provides an additional financial benefit to eligible federal civil servants upon retirement, alongside their pension benefits under the Contributory Pension Scheme.
Under the arrangement, federal civil servants who have put in at least 10 years of service are entitled to an exit benefit equivalent to 100 per cent of their total annual emolument at retirement.
The Federal Government has made provision of 32.99 billion naira in the 2026 Appropriation for the scheme, while 12.33 billion naira has so far been released into a dedicated Exit Benefit Scheme Account with the Central Bank of Nigeria.
Smooth Processing
The National Pension Commission, PenCom, says it is collaborating 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 the smooth processing and payment of the benefits.
READ ALSO:
Nigerian Government Approves New Exit Benefit for Civil Servants
Under the payment process, retirees are required to submit relevant documents, including their clearance letters and recent payslips, to their pension fund administrators.
The PFAs verify the retirees’ 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 through the PFA, after which the PFA transfers the full amount to the retiree’s designated salary bank account.
PenCom stresses that the payment is an additional benefit, separate from the regular retirement benefits accruing to retirees from their retirement savings accounts.
The Commission says the commencement of the payments marks a significant development in efforts to strengthen retirement income and provide additional financial support to public servants after their years of service.
It adds that the Federal Government’s initiative could also provide a model for other employers seeking to enhance retirement benefits for their workers.
Consequently, all subsequent retirees of Treasury-funded MDAs who meet the eligibility requirements are entitled to the additional exit benefit of 100 per cent of their total annual emolument at retirement.
