The Federal Government has commenced the payment of Additional Exit Benefits to retirees of Treasury funded Ministries, Departments and Agencies (MDAs), with approximately ₦1.1 billion already paid to 175 retirees who exited the Federal Public Service between 1 January and 31 August 2026.
The payment is being made under the Federal Government Exit Benefit Scheme (EBS), approved by the Federal Executive Council and effective from 1 January 2026.
The Scheme provides an additional financial benefit to Federal Government employees at retirement, alongside their pension benefits under the Contributory Pension Scheme (CPS). Under the Scheme, Federal Civil Servants who have served for at least 10 years are entitled to an Exit Benefit equivalent to 100 per cent of their total annual emolument.
The commencement of payment marks yet another watershed moment for the CPS as efforts are intensified at delivering more benefits to retirees beyond what they have accumulated in their Retirement Savings Accounts during their service period. It is noteworthy that the FGN has led the way in offering additional benefits to its retirees, which is worthy of replication by other employers.
In ensuring the smooth implementation of the Additional Exit Benefits Scheme, the 2026 Appropriation provided the sum of ₦32.90 billion. So far, the Federal Government has released ₦12.3 billion into the dedicated Exit Benefit Scheme Account maintained with the Central Bank of Nigeria (CBN).
The National Pension Commission (PenCom) is supporting the implementation of the Scheme by working with the Office of the Head of the Civil Service of the Federation (OHCSF), the Office of the Accountant General of the Federation (OAGF), Pension Fund Administrators (PFAs) and other stakeholders to facilitate the processing and payment of the benefits.
