PenCom: FG pays N1.1bn additional benefits to 175 retirees

The Federal Government has paid about N1.1bn in additional exit benefits to 175 federal retirees who left service between January 1 and August 31, 2026.

The payment comes under the Federal Government Exit Benefit Scheme, which the Federal Executive Council approved and commenced on January 1, 2026.

The National Pension Commission disclosed this in a statement on Friday.

According to PenCom, the scheme gives eligible federal civil servants an additional financial benefit when they retire. The payment is separate from their pension benefits under the Contributory Pension Scheme.

Federal civil servants who have served for at least 10 years qualify for an exit benefit equal 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 commission said.

PenCom said the 2026 Appropriation provided N32.90bn for the scheme. So far, the Federal Government has released N12.3bn into a dedicated Exit Benefit Scheme Account with the Central Bank of Nigeria.

The commission said the N1.1bn payment marked the formal commencement of the scheme.

However, PenCom stressed that the exit benefit does not replace existing pension benefits under the Contributory Pension Scheme.

“It should be emphasised that this is an additional payment, existing alongside the usual benefits drawn by the retirees from their RSA balances,” PenCom stated.

The commission added that future retirees from Treasury-funded Federal Government ministries, departments and agencies will qualify for the benefit if they meet the scheme’s requirements.