The Federal Government has started paying the Additional Exit Benefit, AEB, to retirees of Treasury-funded Ministries, Departments and Agencies, MDAs, with about N1.1 billion disbursed to 175 retirees so far.
The beneficiaries exited the Federal Public Service between 1 January and 31 August 2026, according to the National Pension Commission, PenCom.
The payment is made under the Federal Government Exit Benefit Scheme, EBS, which was approved by the Federal Executive Council and took effect on 1 January 2026.
PenCom said the scheme gives federal employees an extra financial benefit at retirement, on top of their pension entitlements under the Contributory Pension Scheme, CPS.
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.
PenCom described the commencement of payment as “yet another watershed moment” for the CPS, as efforts continue to give retirees more than the savings they built up in their Retirement Savings Accounts, RSAs.
The commission added that the Federal Government has set an example that other employers should follow.
Funding
The 2026 Appropriation provided N32.90 billion for the scheme. So far, the Federal Government has released N12.3 billion into the dedicated Exit Benefit Scheme Account at the Central Bank of Nigeria, CBN.
PenCom 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 process and pay the benefits.
How retirees can access it
Retirees must submit their clearance letter, recent payslips and other required documents to their PFAs.
The PFA verifies the records and forwards them to PenCom for validation and approval. After approval, the Exit Benefit is credited to the retiree’s RSA through the PFA, which then transfers the full amount to the retiree’s designated salary account.
PenCom stressed that the benefit is separate from, and paid in addition to, the regular entitlements retirees draw from their RSA balances.
The commission said the first payment of N1.1 billion to 175 retirees confirms that the scheme has officially begun, and that all subsequent retirees of Treasury-funded MDAs are eligible for the 100 per cent benefit.
“Undoubtedly, this will go a long way in enhancing the financial status of public service retirees who have given their best in service to the nation,” PenCom said.
The commission reiterated its commitment to working with stakeholders to ensure smooth implementation and prompt payment of benefits.
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