FG Pays ₦1.1bn Exit Benefits To 175 Retirees

By LOVETH-AZODO CHIJIOKE, Lagos.

The Federal Government has commenced payment of additional exit benefits to retirees of 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 payments are being made under the Federal Government Exit Benefit Scheme (EBS), approved by the Federal Executive Council and effective from January 1, 2026.

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 at retirement, in addition to 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 commencement of the payments marks the introduction of an additional retirement benefit for eligible Federal Government employees beyond the benefits accumulated in their Retirement Savings Accounts (RSAs) during their years of service.

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), the 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 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 RSA through the PFA, after which the PFA transfers the entire amount to the retiree’s designated salary bank account.

The payment is separate from the usual benefits retirees receive from their RSA balances.

The Federal Government said the scheme would provide additional financial support to retiring civil servants and enhance the financial position of public service retirees.

With the maiden payment of ₦1.1 billion to 175 retirees, the Additional Exit Benefits Scheme for Federal Government retirees has officially commenced, with subsequent retirees of Treasury-funded MDAs eligible for the additional benefit of 100 per cent of their total annual emolument at retirement.