FG Begins Payment of New Exit Benefits to Retirees, Disburses N1.1bn to 175 Ex-Civil Servants

Retired federal workers have started getting extra cash as the federal government rolls out a new welfare package for treasury-funded MDAs.

 

The National Pension Commission, PenCom, confirmed the rollout of the Additional Exit Benefits Scheme, saying N1.1 billion has already been paid to 175 retirees who left service between January 1 and August 31, 2026.

 

 

PenCom explained that the Exit Benefit Scheme, EBS, was approved by the Federal Executive Council and took effect on January 1, 2026.

 

It runs alongside the Contributory Pension Scheme and gives federal civil servants an extra payout at retirement.

 

Under the scheme, any federal civil servant with at least 10 years of service will get an Exit Benefit equal to 100% of their total annual emolument, in addition to their RSA pension.

 

“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,” PenCom stated.

 

To back the scheme, the 2026 Appropriation Act earmarked N32.90 billion. So far, the government has released N12.3 billion into a dedicated Exit Benefit Scheme Account with the CBN.

 

PenCom said it is coordinating with the Office of the Head of Service, OAGF, PFAs and other stakeholders to fast-track processing and payment.

 

The commission also urged state governments and private employers to emulate the federal government’s move.

 

“Noteworthy that the federal government had led the way in offering additional benefits to its retirees, which was worthy of replication by other employers,” it added.