FG Begins N1.1bn Exit Benefit Payments to 175 Retirees
The Federal Government has commenced the payment of additional exit benefits to retired civil servants, with about N1.1 billion already disbursed to 175 retirees who left the Federal Public Service between January 1 and August 31, 2026.
The National Pension Commission, PenCom, disclosed this in a statement on Friday, describing the payment as the formal commencement of the Federal Government Exit Benefit Scheme, which took effect on January 1, 2026, following approval by the Federal Executive Council. Under the scheme, eligible federal civil servants who have served for at least 10 years are entitled to an additional exit benefit equivalent to 100 per cent of their total annual emolument at retirement. PenCom said the payment is separate from the pension benefits retirees receive under the Contributory Pension Scheme.
The commission said N32.90 billion was provided in the 2026 budget for the implementation of the scheme, while N12.3 billion has so far been released into a dedicated account maintained with the Central Bank of Nigeria. PenCom said it is working with the Office of the Head of the Civil Service of the Federation, the Office of the Accountant-General of the Federation, Pension Fund Administrators and other stakeholders to process payments to eligible retirees.
According to the commission, retirees are required to submit relevant documents, including clearance letters and recent payslips, to their Pension Fund Administrators for verification. The information is then forwarded to PenCom for validation and approval. Once approved, the benefit is credited to the retiree’s Retirement Savings Account through the PFA before the full amount is transferred to the beneficiary’s designated salary account.
PenCom stressed that the additional payment does not replace existing pension benefits and will be paid alongside the benefits accrued in retirees’ Retirement Savings Accounts. The commission said subsequent retirees from Treasury-funded Federal Government ministries, departments and agencies who meet the requirements will also be eligible for the additional benefit.
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