FG pays N1.1bn additional exit benefits to 175 retirees

The Federal Government has commenced payment of additional exit benefits to retired federal civil servants, with approximately N1.1 billion already paid to 175 retirees.

The beneficiaries left Treasury-funded Ministries, Departments and Agencies between January 1 and August 31, 2026.

The National Pension Commission said the payments are being made under the Federal Government Exit Benefit Scheme, which took effect on January 1 following approval by the Federal Executive Council.

Under the scheme, eligible federal civil servants who have completed at least 10 years of service are entitled to an additional benefit equivalent to 100 per cent of their total annual emolument.

The payment is separate from benefits accumulated under the Contributory Pension Scheme.

PenCom said the 2026 federal budget provided N32.9 billion for implementation of the scheme, while N12.3 billion has so far been released into a dedicated account with the Central Bank of Nigeria.

Retirees are required to submit documents including clearance letters and recent payslips to their Pension Fund Administrators.

The PFAs verify the documents before forwarding records to PenCom for validation and approval.

Once approved, the additional benefit is credited through the retiree’s Retirement Savings Account before being transferred to the beneficiary’s designated salary account.

The government said the scheme is intended to provide additional financial support to eligible federal workers at retirement.