The Federal Government has commenced the payment of additional exit benefits to retirees of Treasury-funded Ministries, Departments and Agencies (MDAs), with about N1.1 billion already disbursed to 175 former federal workers.
The payment is being implemented under the Federal Government Exit Benefit Scheme (EBS), which was approved by the Federal Executive Council and became effective on January 1, 2026.
The National Pension Commission (PenCom), which announced the development, said the scheme provides an additional financial benefit to eligible federal workers upon retirement, in addition to the pension benefits they receive under the Contributory Pension Scheme (CPS).
Under the arrangement, federal civil servants who have completed at least 10 years in service are entitled to an exit benefit equivalent to 100 per cent of their total annual emolument at retirement.
PenCom described the commencement of the payment as a major development in efforts to improve the welfare of retirees and provide benefits beyond the funds accumulated in their Retirement Savings Accounts (RSAs) during their years of service.
The commission noted that the Federal Government had taken the lead in introducing additional retirement benefits, adding that the initiative could serve as a model for other employers.
N32.9bn provided for scheme
The 2026 Appropriation Act provides N32.90 billion for the implementation of the Additional Exit Benefits Scheme.
PenCom disclosed that the Federal Government has so far released N12.3 billion into a dedicated Exit Benefit Scheme Account maintained with the Central Bank of Nigeria (CBN).
The commission said it is working with the Office of the Head of the Civil Service of the Federation (OHCSF), the Office of the Accountant General of the Federation (OAGF), Pension Fund Administrators (PFAs) and other stakeholders to ensure that eligible retirees are properly verified and paid.
How retirees will receive the benefit
Under the payment process, retirees are expected to submit relevant documents, including their clearance letters and recent payslips, to their respective Pension Fund Administrators.
The PFAs will verify the retirees’ records and forward the information to PenCom for further validation and approval.
After approval, the exit benefit will be credited to the retiree’s Retirement Savings Account through the PFA. The PFA will subsequently transfer the full amount to the retiree’s designated salary account.
PenCom stressed that the payment is an additional benefit and does not replace the normal retirement benefits available to retirees from their RSA balances.
The commission said the scheme is designed to provide additional financial support to retiring federal civil servants at a critical stage of their lives.
According to PenCom, the initial N1.1 billion payment to 175 retirees confirms that the scheme has officially commenced, meaning subsequent retirees from Treasury-funded MDAs who meet the requirements will also be eligible for an exit benefit equivalent to 100 per cent of their total annual emolument.
Nigeria Airways pensioners demand N36bn
Meanwhile, retirees of the defunct Nigeria Airways have appealed to President Bola Tinubu to intervene in the release of about N36 billion in outstanding pension and severance benefits owed to former employees of the airline.
The pensioners, under the Nigeria Union of Pensioners (NUP), made the demand during a peaceful protest in Lagos.
They alleged that the Ministry of Finance had yet to release the funds despite approval reportedly granted by President Tinubu in June 2025.
Speaking for the retirees, Olufemi Ashogbon said the former workers had endured years of hardship since Nigeria Airways was liquidated in 2004, resulting in the disengagement of more than 6,000 employees.
Ashogbon said the total settlement approved for former workers was about N78 billion, with payments made by successive administrations leaving an outstanding balance of approximately N36 billion.
He appealed to the President to ensure that the outstanding funds are released, saying many of the former employees are now elderly, ill and struggling to survive.
The retirees said many affected former workers are between 65 and 101 years old and include pilots, engineers, cabin crew members, technicians, accountants, administrators and other aviation professionals.
In a communiqué signed by former President of the Aircraft Pilots and Engineers, Engr. Kyari Ayuba, and former Director of Finance, Mrs. Bose Oluwo, the pensioners recalled the prolonged hardship that followed the liquidation of the airline.
They also alleged that while Nigerian employees were left without their full entitlements, foreign workers who served with Nigeria Airways received their severance benefits in accordance with applicable labour laws and international regulations.
The pensioners said they had waited for 22 years to receive the full benefits owed to them and urged the Federal Government and the Minister of Finance to resolve the matter urgently.
They expressed appreciation for the reported presidential approval of the N36 billion payment but appealed for the funds to be released without further delay, stressing that some of the affected retirees had died while waiting for their entitlements.
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