The Federal Government has officially commenced the disbursement of the Additional Exit Benefits (AEB) to retirees of Treasury-funded Ministries, Departments, and Agencies (MDAs).
Approximately ₦1.1 billion has already been disbursed to 175 retirees who exited the Federal Public Service between January 1 and August 31, 2026.
This initiative operates under the Federal Government Exit Benefit Scheme (EBS), which was approved by the Federal Executive Council and took effect on January 1, 2026.
According to a statement released by the National Pension Commission (PenCom), the scheme provides a supplementary financial cushion to Federal Government employees alongside their regular pension benefits under the Contributory Pension Scheme (CPS).
Under the guidelines, civil servants who have served for a minimum of 10 years are entitled to an exit benefit equivalent to 100% of their total annual emolument.
PenCom described the development as a watershed moment for the CPS, noting that the Federal Government has set a commendable standard for other employers.
To ensure seamless implementation, the 2026 Appropriation allocated ₦32.90 billion for the scheme.
The Federal Government has so far released ₦12.3 billion into a dedicated Exit Benefit Scheme Account maintained with the Central Bank of Nigeria (CBN).
PenCom is actively collaborating 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 streamline processing and verification.
To access the funds, retirees must submit required documentation—including clearance letters and recent payslips—to their respective PFAs for verification.
Once validated and approved by PenCom, the funds are credited to the retiree’s Retirement Savings Account (RSA) before being transferred to their designated salary bank account.
Officials emphasized that this payment is entirely separate from, and exists alongside, the standard benefits drawn from accumulated RSA balances.
PenCom reaffirmed its commitment to working with all stakeholders to guarantee the prompt and transparent payment of benefits to eligible retirees.
The successful maiden disbursement underscores the government’s dedication to reinforcing post-retirement financial security.
Subsequent Treasury-funded MDA retirees meeting the service criteria remain fully eligible to receive the 100% annual emolument bonus upon leaving active service.
