Federal Government Begins Payment of ₦1.1 Billion Exit Bonus to Civil Service Pensioners

The Federal Government has commenced the disbursement of Additional Exit Benefits (AEB) to public servants, with an initial sum of ₦1.1 billion paid out to 175 retirees who exited treasury-funded Ministries, Departments, and Agencies (MDAs) this year.

The payment marks the official takeoff of the Federal Government Exit Benefit Scheme, a framework approved by the Federal Executive Council to provide extra financial support to retiring workers alongside their standard benefits under the Contributory Pension Scheme (CPS).

According to details released by the National Pension Commission (PenCom), qualifying federal employees who have served for at least a decade are entitled to a lump-sum exit bonus equivalent to 100 percent of their total annual emolument. PenCom noted that the milestone reflects ongoing efforts to deliver robust financial buffers to public servants after active service.

To sustain the program, the 2026 Appropriation framework provided a total allocation of ₦32.90 billion, out of which the Federal Government has already released ₦12.3 billion into a dedicated Exit Benefit Scheme account domiciled with the Central Bank of Nigeria (CBN).

Under the verification and payment process, beneficiaries clear their records through their respective Pension Fund Administrators (PFAs) before funds are routed directly to their designated bank accounts. Labor stakeholders and public service analysts have commended the initiative, noting that the timely injection of funds will significantly cushion retiring personnel amid prevailing economic realities.