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🇳🇬 Nigeria /Economy & Trade

FG opens special CBN account for retirees’ benefits

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • The Nigerian Federal Government has established a special account at the Central Bank of Nigeria to manage and disburse retirement benefits under the new Exit Benefit Scheme.
  • This initiative aims to enhance transparency and safeguard funds for retiring civil servants, with the National Pension Commission overseeing the account.
  • The scheme, effective January 1, 2026, provides retiring employees with 100% of their total annual emoluments as an additional benefit, complementing the existing Contributory Pension Scheme.

The Nigerian Federal Government has launched a dedicated account with the Central Bank of Nigeria to manage the new Exit Benefit Scheme for retiring civil servants. This move aims to ensure transparency and security in the disbursement of retirement funds.

To facilitate efficient management and accountability, a dedicated Exit Benefit Scheme Account shall be maintained with the Central Bank of Nigeria under the management of PenCom.

— Head of the Civil Service of the Federation, Didi Walson-JackDescribing the operational framework for the new retirement benefit scheme.

The special account will be overseen by the National Pension Commission. Implementation guidelines confirm that the account will be exclusively used for financing the scheme, allowing for clear tracking of all financial inflows and outflows. This framework follows the Federal Executive Council's approval of the Exit Benefit Scheme.

This account shall be operated solely for the purpose of financing the Exit Benefit Scheme. It shall enable transparent tracking of inflows and outflows, ensuring that all disbursements are properly accounted for and that records are maintained by all relevant agencies.

— Head of the Civil Service of the Federation, Didi Walson-JackExplaining the purpose and transparency mechanisms of the dedicated CBN account.

Under the new scheme, eligible employees of treasury-funded Ministries, Departments, and Agencies who have served for at least 10 years will receive a benefit equivalent to 100% of their total annual emoluments upon retirement or disengagement. This benefit is separate from and complementary to the existing Contributory Pension Scheme.

The Exit Benefit Scheme is designed to enhance the welfare of eligible Federal Government employees upon their exit from Service.

— Circular detailing the schemeStating the primary objective of the new retirement benefit.

The scheme is set to take effect from January 1, 2026. The dedicated CBN account will receive funding through the Federal Government's annual budget and any special allocations designated for the initiative. The government has committed to fully fund this non-contributory entitlement for retiring employees.

Under the Scheme, eligible beneficiaries shall receive an amount equivalent to one hundred per cent (100%) of their total annual emoluments at the time of exit from the Service.

— Circular detailing the schemeOutlining the specific benefit amount for eligible retirees.
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Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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