Federal Government Disburses N1.1 Billion in Exit Bonuses to Retirees

The Federal Government of Nigeria has officially commenced the disbursement of Additional Exit Benefits (AEB) to retirees from Treasury-funded Ministries, Departments, and Agencies (MDAs), with an initial payment of approximately N1.1 billion made to 175 retirees who exited the Federal Public Service between January 1 and August 31, 2026. This initiative is part of the Federal Government Exit Benefit Scheme (EBS), which was approved by the Federal Executive Council and is designed to provide supplementary financial support to retiring federal employees.

The National Pension Commission (PenCom) announced that the scheme offers an exit benefit equivalent to 100 percent of the total annual emolument for Federal Civil Servants who have served a minimum of ten years. This additional financial support is intended to enhance the overall retirement package for government employees, complementing their pensions accrued under the Contributory Pension Scheme (CPS).

In a statement, PenCom highlighted that the introduction of the AEB is a significant advancement in the efforts to provide more comprehensive benefits to retirees, indicating that it represents a “watershed moment” for the CPS. The scheme aims to deliver more substantial financial backing to retirees, ensuring they have better financial security in their post-employment years. As stated by PenCom, “It is noteworthy that the FGN has led the way in offering additional benefits to its retirees, which is worthy of replication by other employers.”

To facilitate the smooth implementation of the Additional Exit Benefits Scheme, the 2026 Appropriation has allocated a total of N32.90 billion. This funding aims to ensure that the additional benefits can be sustained and effectively managed, contributing to the financial well-being of retirees across the country.