PenCom says FG has paid N1.1bn exit benefits to retirees in 2026

The federal government has paid about N1.1 billion in additional exit benefits to 175 civil servants who retired from Treasury-funded ministries, departments and agencies (MDAs) between January 1 and August 31, 2026.

The National Pension Commission (PenCom) announced this on Friday, saying the payments are being made under the federal government exit benefit scheme (EBS).

PenCom said the scheme was approved by the federal executive council (FEC) and took effect from January 1, 2026.

“The Scheme provides an additional financial benefit to Federal Government employees at retirement, alongside their pension benefits under the Contributory Pension Scheme (CPS),” the commission said.

According to PenCom, federal civil servants who have served for at least 10 years are entitled to an exit benefit equivalent to 100 percent of their total annual emolument.

The agency said N32.9 billion was provided in the 2026 appropriation for the scheme, while the federal government has released N12.3 billion into a dedicated exit benefit scheme account with the Central Bank of Nigeria (CBN).

PenCom said about N1.1 billion of the released funds has so far been paid to the 175 retirees.

“The 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,” the commission said.

The commission 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 and pension fund administrators (PFAs) to process the benefits.

PenCom said retirees are required to provide their clearance letters and recent payslips to their PFAs.