BY NGOZI ONYEAKUSI

Tinubu

The Federal Government has commenced the payment of Additional Exit Benefits to retiring civil servants in Treasury-funded Ministries, Departments and Agencies (MDAs), with about ₦1.1 billion already paid to 175 retirees who exited the Federal Public Service between January 1 and August 31, 2026.

The payment is being implemented under the Federal Government Exit Benefit Scheme (EBS), which was approved by the Federal Executive Council and became effective from January 1, 2026.

Under the scheme, Federal Government employees who have served for a minimum of 10 years are entitled to an Exit Benefit equivalent to 100 per cent of their total annual emolument at retirement.

The Federal Government said the scheme is an additional financial benefit to retirees, separate from their pension benefits under the Contributory Pension Scheme (CPS).
For the implementation of the scheme, the 2026 Appropriation provided ₦32.90 billion, while the Federal Government has so far 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 in collaboration with the Office of the Head of the Civil Service of the Federation (OHCSF), Office of the Accountant General of the Federation (OAGF), Pension Fund Administrators (PFAs) and other stakeholders.

Under the payment process, retirees are required to submit relevant documents, including their clearance letters and recent payslips, to their respective PFAs.
The PFAs verify the retirees’ records and forward the information to PenCom for further validation and approval.
Following approval, the Exit Benefit is credited to the retiree’s Retirement Savings Account (RSA) through the PFA. The PFA subsequently transfers the entire amount to the retiree’s designated salary bank account.
The Commission emphasised that the Exit Benefit is an additional payment and exists alongside the regular retirement benefits that retirees receive from their RSA balances.

The Federal Government said the introduction of the scheme is aimed at providing additional financial support to retiring civil servants at a significant stage of their lives and strengthening the retirement benefits available to workers after leaving active service.

The maiden payment of ₦1.1 billion to 175 retirees marks the official commencement of the Additional Exit Benefits Scheme for Federal Government retirees.

Consequently, subsequent retirees from Treasury-funded MDAs who meet the eligibility requirements will be entitled to the additional Exit Benefit of 100 per cent of their total annual emolument at retirement.
PenCom reaffirmed its commitment to working with relevant stakeholders to ensure the smooth implementation of the scheme and prompt payment of Exit Benefits to eligible retirees.