The federal government has begun paying the newly introduced exit benefit for retiring federal civil servants, with about N1.1 billion paid to 175 retirees.
The National Pension Commission (PenCom) in a statement on Friday said the beneficiaries retired from treasury-funded ministries, departments and agencies between January 1 and August 31.
The payment marks the implementation of the Federal Government Exit Benefit Scheme, which provides eligible retiring civil servants with an additional benefit equivalent to 100 per cent of their total annual emolument.
The benefit is different from what retirees receive under the Contributory Pension Scheme. To qualify for this, a federal civil servant must have served for at least 10 years in service.
The Federal Executive Council had approved the scheme earlier this year, with effect from January 1. The approval followed recommendations by an inter-ministerial technical committee set up by the Office of the Head of the Civil Service of the Federation.
The committee worked with PenCom, the Budget Office of the Federation and the Office of the Accountant-General of the Federation on its implementation.
Earlier in April, Didi Walson-Jack, the head of the civil service of the federation, announced the scheme alongside other welfare measures for federal workers. The exit benefit is an addition to the Contributory Pension Scheme introduced in 2004.
PenCom said N32.90 billion was provided for the scheme in the 2026 budget. Of this amount, the federal government has so far released N12.3 billion into a dedicated Exit Benefit Scheme account maintained with the Central Bank of Nigeria.
The commission said it is working with the Office of the Head of the Civil Service of the Federation, the OAGF, Pension Fund Administrators and other relevant agencies to process the payments.
Under the arrangement, retirees are required to submit documents, including their clearance letters and recent payslips, to their PFAs.
The PFA will then verify the documents and subsequently forward the retiree’s information to PenCom for further checks and approval.
After approval, the exit benefit is paid into the retiree’s Retirement Savings Account through the PFA. The PFA is then required to transfer the full amount to the retiree’s designated salary bank account.
The government had earlier created a dedicated account with the CBN for this particular scheme. The account is managed by PenCom and funded through provisions in the federal budget.
The scheme is fully funded by the federal government meaning there is no need for ab additional contributions from workers.
It applies to eligible employees of treasury-funded federal MDAs and operates alongside the existing pension scheme.
PenCom said subsequent retirees from treasury-funded MDAs who meet the requirements will also receive the additional benefit..
