Fidelia Soriwei, Abuja
The Federal Government has commenced the payment of additional retirement benefits to federal civil servants, with N1.1bn already disbursed to 175 retirees who left the Federal Public Service between January 1 and August 31, 2026.
The payment is being made under the Federal Government Exit Benefit Scheme, which was approved by the Federal Executive Council and became effective on January 1, 2026.
The National Pension Commission disclosed this in a statement on Friday, describing the scheme as an additional financial benefit for eligible retiring employees, separate from their regular pension benefits under the Contributory Pension Scheme.
Under the scheme, eligible federal civil servants who have completed 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 commenced the payment of Additional Exit Benefits to retirees of Treasury funded Ministries, Departments and Agencies, with approximately N1.1bn already paid to 175 retirees who exited the Federal Public Service between 1 January and 31 August 2026,” PenCom said.
The commission said N32.90bn was allocated in the 2026 Appropriation for the scheme, while the government has so far released N12.3bn into a dedicated Exit Benefit Scheme Account maintained with the Central Bank of Nigeria.
The N12.3bn release represents about 37.4 per cent of the total amount budgeted for the scheme this year.
PenCom said it was 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 process and pay eligible retirees.
Retiring workers are required to submit documents, including clearance letters and recent payslips, to their Pension Fund Administrators for verification. The PFAs then forward verified records to PenCom for further validation and approval.
Once approved, the additional benefit is credited to the retiree’s Retirement Savings Account through the PFA before the administrator transfers the full amount to the beneficiary’s designated salary bank account.
PenCom stressed that the new payment does not replace retirees’ existing pension benefits under the Contributory Pension Scheme.
“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.
The commission said the maiden disbursement marked the formal commencement of the Additional Exit Benefits Scheme and confirmed that subsequent retirees from Treasury-funded Federal Government MDAs who meet the requirements would be eligible for the benefit.
“The maiden payment of N1.1bn to 175 retirees demonstrates that the Additional Exit Benefits Scheme for FGN retirees has officially commenced,” PenCom said.
PenCom added that it would continue working with relevant stakeholders to ensure eligible Federal Government retirees receive their additional exit benefits promptly.
