- Eligible civil servants will receive a lump-sum benefit upon retirement
- The scheme is designed to ensure transparency and timely payment of retirement benefits
The Federal Government has established a special account with the Central Bank of Nigeria (CBN) to manage and disburse payments under the newly introduced Exit Benefit Scheme for retiring civil servants.
Eko Hot Blog reports that the initiative is part of measures aimed at ensuring transparency, accountability, and efficient administration of retirement benefits for eligible public servants.
According to implementation guidelines signed by the Head of the Civil Service of the Federation, Didi Walson-Jack, the account will be managed by the National Pension Commission (PenCom), which will oversee all funds allocated to the scheme.
The guidelines state that the account will serve as the sole repository for monies meant for the Exit Benefit Scheme and will be used exclusively for financing retirement payouts. The arrangement is expected to provide clear monitoring of all financial transactions and ensure proper record-keeping by relevant government agencies.
The dedicated account forms part of the framework approved by the Federal Executive Council following the introduction of the Exit Benefit Scheme.
Under the policy, employees of treasury-funded Ministries, Departments and Agencies (MDAs) who have completed at least 10 years of service will receive a lump-sum payment equivalent to 100 per cent of their annual emoluments upon retirement or disengagement.
The scheme took effect on January 1, 2026, and was introduced to improve the welfare of federal workers after leaving service.
Government officials clarified that the programme is not intended to replace the existing Contributory Pension Scheme. Instead, it will function as an additional retirement package designed to complement pension benefits already available to workers.shirr
Funding for the scheme will come entirely from the Federal Government through annual budgetary allocations and any special provisions approved for the programme.
The government described the initiative as a non-contributory welfare package created to provide extra financial support to eligible retirees.
As part of the implementation process, PenCom will compile and verify retirement records using data obtained from the Integrated Payroll and Personnel Information System (IPPIS) and the Government Integrated Financial Management Information System (GIFMIS).
The commission will also calculate the financial obligations due to beneficiaries and submit estimates for annual budgetary consideration.
The Budget Office of the Federation will make the necessary appropriations, while the Federal Ministry of Finance will prepare quarterly cash release plans.
Approved funds will then be transferred by the Office of the Accountant-General of the Federation into the dedicated CBN account for onward payment to beneficiaries through their Pension Fund Administrators (PFAs).
The guidelines direct PFAs to complete payments to beneficiaries within 10 working days after receiving funds from PenCom.
The Federal Government believes the establishment of the ring-fenced account will help eliminate delays and funding uncertainties that have often affected retirement benefit payments in the public service.
The scheme also covers transitional arrangements for workers who retired between January 1 and September 30, 2026, as well as next-of-kin of eligible employees who died within the period.
Beneficiaries are expected to process their claims through their respective Pension Fund Administrators.
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