Nigeria distributes exit bonuses to Federal retirees
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The Federal Government of Nigeria began paying Additional Exit Benefits to retirees of its Treasury-funded agencies.
President Bola Tinubu approved the Federal Government Exit Benefit Scheme, which went into effect on January 1, 2026. The National Pension Commission, PenCom, announced that approximately N1.1 billion has been paid to 175 retirees who left federal service between January 1 and August 31, 2026. The new scheme supplements existing pension benefits under the Contributory Pension Scheme.
Federal civil servants who have worked for at least 10 years qualify for an exit benefit equal to their total annual salary. PenCom is 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 to process and distribute payments.
Retirees access the benefit by submitting documents like clearance letters and payslips to their Pension Fund Administrators, who verify the information before PenCom provides final approval. The funds are then deposited into the retiree’s Retirement Savings Account and transferred to their bank account, adding to the regular pension payments they receive. The Nigerian government allocated N32.90 billion for the scheme in the 2026 budget and has released N12.3 billion to a dedicated account at the Central Bank of Nigeria.
PenCom stated the government hopes other employers will follow this example, and that all future eligible retirees will receive the full benefit.
