The Federal Government has commenced disbursement of additional exit benefits to retirees from Treasury-funded Ministries, Departments and Agencies (MDAs), with 175 former civil servants receiving about N1.1 billion so far.
The National Pension Commission (PenCom) disclosed this in a statement issued in Abuja on Friday, explaining that the beneficiaries were among workers who retired from the Federal Public Service between January 1 and August 31, 2026.
The payment is being made under the Federal Government Exit Benefit Scheme (EBS), an initiative approved by the Federal Executive Council (FEC) to provide additional financial support to retiring civil servants.
According to PenCom, the scheme became effective on January 1 and provides an additional benefit alongside the pension entitlements available to retirees under the Contributory Pension Scheme (CPS).
Under the arrangement, federal civil servants who have put in at least 10 years of service are entitled to an amount equivalent to 100 per cent of their total annual emolument.
The commission said the commencement of the disbursement marked an important step in the government’s effort to strengthen financial support for retirees beyond funds available in their Retirement Savings Accounts (RSAs).
PenCom further disclosed that N32.90 billion was provided in the 2026 Appropriation for the implementation of the Additional Exit Benefits Scheme, while N12.3 billion has so far been released into the dedicated account for the programme at the Central Bank of Nigeria (CBN).
The commission said it was working with relevant government institutions, Pension Fund Administrators (PFAs) and other stakeholders to ensure the effective implementation of the scheme.
It identified the Office of the Head of the Civil Service of the Federation (OHCSF) and the Office of the Accountant-General of the Federation as key partners in the process.
The collaboration, according to PenCom, is intended to support the verification of retirees’ records, processing of claims and timely payment of approved benefits.
To access the payment, eligible retirees are required to provide relevant documents, including clearance letters and recent payslips, to their respective PFAs.
The PFAs are expected to verify the records before submitting the required information to PenCom for additional validation and approval.
Once approval is granted, the approved exit benefit is paid into the retiree’s RSA through the PFA, after which the PFA transfers the entire amount to the beneficiary’s designated salary account.
PenCom clarified that the new payment is an additional entitlement and does not affect or replace the normal retirement benefits payable from retirees’ RSA balances.
The Federal Government said the scheme was designed to offer retiring civil servants additional financial support as they leave active service, stressing the importance of adequate resources for workers during their post-service years.
The initial N1.1 billion disbursement to 175 retirees represents the maiden payment under the scheme, paving the way for subsequent retirees of Treasury-funded MDAs to benefit from an additional exit payment equivalent to 100 per cent of their total annual emolument.
PenCom said the initiative was expected to contribute to improved financial wellbeing among public service retirees and reaffirmed its commitment to working with all relevant stakeholders to ensure smooth implementation and timely payment of the benefits.
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