The Federal Government has commenced payment of additional exit benefits to retired civil servants, with about N1.1bn disbursed to 175 retirees who exited the Federal Public Service between January 1 and August 31, 2026.
The National Pension Commission (PenCom) disclosed this in a statement on Friday, describing the payment as the commencement of the Federal Government Additional Exit Benefits Scheme approved by the Federal Executive Council and effective from January 1, 2026.
Under the scheme, eligible employees of Treasury-funded Federal Government Ministries, Departments and Agencies who have served for at least 10 years are entitled to an additional exit benefit equivalent to 100 per cent of their total annual emolument at retirement.
PenCom said the benefit was separate from pension payments under the Contributory Pension Scheme and was designed to provide retirees with additional financial support after leaving active service.
The commission disclosed that N32.90bn was appropriated in the 2026 budget for implementation of the scheme, out of which the Federal Government had so far released N12.3bn into a dedicated Exit Benefit Scheme Account maintained with the Central Bank of Nigeria.
The amount released represents about 37.4 per cent of the total provision for the scheme in the 2026 Appropriation.
PenCom said the payment process involved collaboration 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 (PFAs) and other relevant stakeholders.
It explained that retiring workers were required to submit relevant documents, including clearance letters and recent payslips, to their PFAs for verification.
Following verification, the PFAs forward the retirees’ records to PenCom for further validation and approval. Once approved, the exit benefit is credited to the beneficiary’s Retirement Savings Account, after which the PFA transfers the full amount to the retiree’s designated salary bank account.
The commission stressed that the additional exit benefit would not replace existing pension entitlements under the Contributory Pension Scheme.
It said the maiden payment of N1.1bn to 175 retirees marked the formal commencement of the scheme, adding that subsequent retirees from Treasury-funded Federal Government MDAs who meet the eligibility requirements would also benefit.
PenCom said the Federal Government had taken the lead in providing additional retirement benefits and encouraged other employers to consider similar arrangements for their retiring employees.
The commission added that it would continue working with relevant government institutions and PFAs to ensure the smooth implementation of the scheme and timely payment of benefits to eligible retirees.
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