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

The Federal Government has paid about N1.1 billion in additional exit benefits to 175 retirees of Treasury-funded Ministries, Departments and Agencies (MDAs) who exited the Federal Public Service between January 1 and August 31, 2026.

The National Pension Commission (PenCom) disclosed this in a statement on Friday, stating that the payments were made under the Federal Government Exit Benefit Scheme (EBS), which became effective on January 1, 2026.

The scheme was approved by the Federal Executive Council to provide additional financial benefits to eligible federal employees upon retirement, alongside pension benefits under the Contributory Pension Scheme (CPS).

What they are saying

PenCom said federal civil servants who have served for at least 10 years are eligible for an exit benefit equivalent to 100% of their total annual emolument at retirement.

• The commission said N32.90 billion was provided in the 2026 Appropriation for the implementation of the scheme, while the Federal Government has so far released N12.3 billion into the dedicated Exit Benefit Scheme Account maintained with the Central Bank of Nigeria (CBN).
• According to PenCom, the exit benefit is separate from the funds accumulated in a retiree’s Retirement Savings Account (RSA) under the CPS.
• Eligible retirees are required to submit relevant documents, including clearance letters and recent payslips, to their Pension Fund Administrators (PFAs).

The PFAs are responsible for verifying the retirees’ records before forwarding the information to PenCom for further validation and approval.

Once approved, the exit benefit is credited to the retiree’s RSA through the PFA. The PFA then transfers the full amount to the retiree’s designated salary bank account.

PenCom said the payment process was being implemented in collaboration with the Office of the Head of the Civil Service of the Federation (OHCSF), Office of the Accountant-General of the Federation (OAGF), PFAs and other relevant stakeholders.

Get up to speed

PenCom also introduced measures to make pension administration more accessible to contributors and improve the accuracy of pension records.

• In February 2026, the commission launched its Data Recapture Self-Service Platform (PENCAP), allowing Retirement Savings Account (RSA) holders to complete the mandatory pension data recapture process remotely.

The platform enables contributors to update their biodata and biometric information online. PenCom said the initiative was designed to address challenges including incomplete pension records, delays in accessing benefits and congestion at Pension Fund Administrator (PFA) offices.

• In July 2026, PenCom disclosed plans to increase the statutory pension contribution rate under the ongoing review of the Pension Reform Act (PRA) 2014. Under the current framework, employers contribute a minimum of 10% of an employee’s monthly emoluments, while employees contribute 8%, bringing the mandatory contribution to 18%.

The proposed changes come as pension contributions from the public sector have also increased. PenCom data showed that public-sector pension contributions rose 234.85% to N550.96 billion in the fourth quarter of 2025, contributing to total pension contributions of N903.7 billion during the quarter.

What you should know

The Federal Government Exit Benefit Scheme is separate from the regular pension payments made under the Contributory Pension Scheme (CPS).

• As of October 2025, PenCom said more than 552,000 retirees were receiving regular monthly pensions under the CPS, while total pension assets had surpassed N25 trillion.
• In December 2025, PenCom also announced the commencement of the disbursement of a N758 billion Federal Government pension bond to clear outstanding pension liabilities owed to retirees.

The latest Exit Benefit Scheme therefore provides an additional payment to eligible federal retirees beyond their existing pension benefits and RSA balances.