The Federal Government has introduced an Exit Benefits Scheme that entitles retiring federal civil servants to a one-off payment equal to 100% of their total annual emoluments, in addition to their accrued pension savings and retirement benefits under the Contributory Pension Scheme (CPS).
The scheme, effective from **1 January 2026**, applies to officers in treasury-funded Ministries, Extra Ministerial Departments, and Agencies who have completed at least ten years of service. The policy was announced by Omolola Oloworaran, Director General of the National Pension Commission (PenCom), in a statement outlining the administration's worker welfare agenda.
Oloworaran emphasised that the CPS was never designed to prevent employers from offering additional retirement benefits. The Pension Reform Act already permits employers to establish supplementary benefit arrangements, and the Federal Government's move now serves as a template for other employers.
To safeguard the funds, a dedicated Exit Benefits Scheme Account has been opened with the Central Bank of Nigeria, ring-fenced exclusively for this purpose and managed by PenCom. The Office of the Accountant General of the Federation will transfer approved funds into the account for onward disbursement through retirees' Pension Fund Administrators, who are required to pay beneficiaries within **ten working days**.
The Exit Benefits Scheme is the latest in a series of pension interventions by the administration. Others include the clearance of **₦758 billion** in outstanding pension liabilities, some dating back to 2007; the introduction of Pension Boost 1.0, which raised aggregate monthly pension payments under the CPS by more than **40%**; and the restoration of zero waiting time for accrued pension rights, ending months-long delays faced by retiring federal employees.
The PenCom chief urged state governments to study the initiative and adopt similar arrangements for their workers, noting that retirement security should not be limited to compliance with minimum statutory requirements. She also called on the private sector to view additional retirement benefits as an investment in human capital, arguing that competitive retirement packages help attract talent, retain institutional knowledge, and build organisational loyalty.
