The Federal Government has commenced the payment of additional exit benefits to retiring civil servants, disbursing about N1.1bn to 175 retirees who left the Federal Public Service between January 1 and August 31, 2026.
The payment is being made under the Federal Government Exit Benefit Scheme, which was approved by the Federal Executive Council and took effect from January 1, 2026.
The National Pension Commission disclosed this in a statement issued on Friday.
According to the commission, the scheme provides an additional financial benefit to eligible Federal Government employees upon retirement, separate from their pension benefits under the Contributory Pension Scheme.
Under the arrangement, 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.
“The Federal Government has commenced the payment of Additional Exit Benefits to retirees of Treasury funded Ministries, Departments and Agencies, with approximately N1.1bn already paid to 175 retirees who exited the Federal Public Service between 1 January and 31 August 2026,” the statement said.
PenCom said the commencement of payment marked another development under the Contributory Pension Scheme, as the government sought to provide retirees with benefits beyond the funds accumulated in their Retirement Savings Accounts during active service.
It added that the Federal Government had taken the lead in providing additional retirement benefits and urged other employers to consider similar arrangements.
The commission disclosed that N32.90bn was provided in the 2026 Appropriation for the implementation of the Exit Benefit Scheme.
Of the amount, the Federal Government has so far released N12.3bn into a dedicated Exit Benefit Scheme Account maintained with the Central Bank of Nigeria.
“In ensuring the smooth implementation of the Additional Exit Benefits Scheme, the 2026 Appropriation provided the sum of N32.90bn. So far, the Federal Government has released N12.3bn into the dedicated Exit Benefit Scheme Account maintained with the Central Bank of Nigeria,” the statement said.
The N12.3bn released represents about 37.4 per cent of the N32.90bn provided for the scheme in the 2026 budget.
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