The National Pension Commission (PenCom) has directed treasury-funded Federal Ministries, Departments and Agencies (MDAs) to submit detailed records of employees retiring or due to retire between January 1 and December 31, 2026, as part of preparations for the rollout of the Federal Government’s newly approved Exit Benefit Scheme.
In a circular dated June 16, 2026, and signed by the Acting Head of the Contribution and Bond Redemption Department, Murtala M. Modibbo, the Commission instructed all submissions to be completed on or before July 6, 2026, warning that delays or incomplete data could disrupt benefit processing and undermine retirement planning.
The directive applies to all treasury-funded MDAs and requires strict adherence to a standardised reporting template intended to improve data accuracy and streamline verification ahead of payments.
The Exit Benefit Scheme, approved by the Federal Executive Council, provides for a one-off payment equivalent to 100 per cent of an employee’s final annual emoluments for eligible federal workers who have served a minimum of 10 years at the point of exit from service.
The scheme takes effect retrospectively from January 1, 2026, extending coverage to employees who have already retired within the year.
Under guidelines issued by the Head of the Civil Service of the Federation, eligibility requirements, documentation processes, payment procedures, and budgeting responsibilities have been formally outlined for MDAs participating in the scheme.
PenCom also confirmed that its Contribution and Bond Redemption Application is being upgraded to include a dedicated Exit Benefit Scheme module to support processing and tracking of payments.
A separate Exit Benefit Scheme account has been established with the Central Bank of Nigeria (CBN) under PenCom’s supervision to provide oversight and improve transparency in fund administration.
The scheme runs alongside the existing Contributory Pension Scheme (CPS) and does not replace it, but adds a parallel payout structure for qualifying retirees. While authorities have not disclosed the projected fiscal cost, the requirement to pay full annual emoluments to eligible retirees is expected to increase short-term budgetary pressures across MDAs with large retirement cohorts.
Analysts say the effectiveness of the programme will depend heavily on the accuracy and timeliness of data submitted by MDAs, a recurring challenge in Nigeria’s public service pension administration.
For thousands of federal employees expected to retire in 2026, the directive marks a critical administrative step toward determining eligibility and ensuring timely disbursement of benefits under the new framework.
However, execution risks remain, particularly around data integrity, inter-agency coordination, and funding discipline, long-standing constraints in Nigeria’s public sector pension management system.
