By Daniel Oluwatobiloba Popoola
The Federal Government has paid N1.1 billion in additional exit benefits to 175 civil servants who retired from the federal public service between January and August 2026.
The National Pension Commission disclosed this in a statement on Friday, 11 September, 2026 noting that the payment was made under the Federal Government Exit Benefit Scheme, approved by the Federal Executive Council and effective Thursday, 1 January, 2026.
PenCom said the scheme grants retiring federal workers a financial benefit separate from their pension entitlements under the Contributory Pension Scheme.
The 175 beneficiaries retired from Treasury-funded ministries, departments and agencies within the eight-month period.
PenCom explained that any federal worker with a minimum of ten years’ service qualifies for an exit benefit equivalent to 100 per cent of their total annual emolument.
The commission described the disbursement as the formal commencement of the scheme.
It said the 2026 Appropriation provided N32.90 billion for the scheme, of which N12.3 billion, about 37.4 per cent, had so far been released into a dedicated Exit Benefit Scheme Account domiciled with the Central Bank of Nigeria.
PenCom said it was working 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 process and pay the benefits.
On the payment procedure, the commission said retiring officers must first submit their clearance letters and recent payslips to their Pension Fund Administrators for verification. The PFA then forwards the records to PenCom for validation and final approval.
Once approved, PenCom credits the exit benefit into the retiree’s Retirement Savings Account through the PFA, which transfers the full sum to the retiree’s designated salary bank account.
PenCom stressed that the exit benefit does not replace retirees’ pension entitlements under the Contributory Pension Scheme but exists alongside them.
“It should be emphasised that this is an additional payment, existing alongside the usual benefits drawn by the retirees from their RSA balances,” the commission stated.
PenCom commended the Federal Government for leading the initiative and urged other employers to adopt similar schemes for their retiring staff.
It added that subsequent retirees from Treasury-funded federal agencies who meet the scheme’s requirements would equally receive an exit benefit equivalent to 100 per cent of their total annual emolument.
“The maiden payment of N1.1bn to 175 retirees demonstrates that the Additional Exit Benefits Scheme for FGN retirees has officially commenced,” PenCom said, adding that it would continue working with stakeholders to sustain implementation and ensure prompt payment to eligible retirees.
