The Federal Government has released ₦12.3 billion into the dedicated Exit Benefit Scheme Account maintained with the Central Bank of Nigeria (CBN) just as the National Pension Commission (PenCom) has urged Federal government employees about to retire under the Contributory Pension Scheme (CBS) to acquaint themselves with the clearance procedures from their respective Pension Funds Administrators (PFAs) to enable them to benefit.
Already, 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.
PenCom explained that 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.
It noted that 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”, PenCom added in a statement
It confirmed that in ensuring the smooth implementation of the Additional Exit Benefits Scheme, the 2026 Appropriation provided the sum of ₦32.90 billion, adding that the Federal Government has released ₦12.3 billion into the dedicated Exit Benefit Scheme Account maintained with the Central Bank of Nigeria (CBN).
PenCom further gave assurance of 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.
It said the process is designed to make it easier for retirees to access their Exit Benefits while ensuring that payments are properly verified.
According to PenCom, “Retirees are required to provide the necessary documents, including their clearance letter and recent payslips, to their Pension Fund Administrators. The PFA verifies the retiree’s records and forwards the information to PenCom for further validation and approval.
“Once the payment is approved, the Exit Benefit is credited to the retiree’s Retirement Savings Account (RSA) through the PFA, after which the PFA transfers the entire amount to the retiree’s designated salary bank account. It should be emphasized that this an additional payment, existing alongside the usual benefits drawn by the retirees from their RSA balances.”
Optimum Times recalled that the Federal Government introduced the Scheme to provide retiring Federal Civil Servants with additional financial support at a significant point in their lives and this reinforces the importance of ensuring that workers have adequate resources when they leave active service.
The maiden payment of ₦1.1 billion to 175 retirees demonstrates that the Additional Exit Benefits Scheme for FGN retirees has officially commenced.
“Consequently, all subsequent FGN retirees of Treasury-Funded MDAs are eligible to be paid the additional exit benefit of 100 percent of total annual emolument at retirement. Undoubtedly, this will go a long way in enhancing the financial status of public service retirees who have given their best in service to the nation”, PenCom stated.
It assured commitment to working with all relevant stakeholders to ensure the smooth implementation of the Scheme and the prompt payment of Exit Benefits to retirees under the Federal Government.
