FG Opens Dedicated CBN Account for New Retirees’ Benefit Scheme, Guarantees Funding
FG Opens Dedicated CBN Account for New Retirees’ Benefit Scheme, Guarantees Funding
The Federal Government has established a dedicated account with the Central Bank of Nigeria (CBN) to manage and disburse payments under the newly introduced Exit Benefit Scheme for retiring civil servants, in a move aimed at enhancing transparency and ensuring timely payment of retirement benefits.
The development was contained in implementation guidelines accompanying the Exit Benefit Scheme, signed by the Head of the Civil Service of the Federation, Didi Walson-Jack.
According to the guidelines, the account will be domiciled at the CBN and managed by the National Pension Commission (PenCom), which will serve as the sole custodian of funds allocated for the scheme.
The document stated that the account would be used exclusively to finance the Exit Benefit Scheme and facilitate proper monitoring of inflows and disbursements to ensure accountability in fund management.
The creation of the dedicated account forms part of the implementation framework approved by the Federal Executive Council following the adoption of the scheme.
Under the arrangement, eligible employees of treasury-funded Ministries, Departments and Agencies (MDAs) who have completed at least 10 years in service will receive a one-time payment equivalent to 100 per cent of their annual emoluments upon retirement or disengagement.
The guidelines indicate that the scheme took effect on January 1, 2026, and is intended to improve the welfare of retiring federal workers.
The government clarified that the Exit Benefit Scheme is separate from and complementary to the existing Contributory Pension Scheme, which remains in operation.
Funding for the initiative will come from annual federal budgetary allocations and any special provisions approved for the scheme.
The government described the programme as a fully funded, non-contributory welfare package for eligible employees of treasury-funded MDAs.
According to the guidelines, the Federal Government’s decision to bear the full cost underscores its commitment to providing additional support for workers after years of public service.
PenCom will be responsible for compiling retirement data from the Integrated Payroll and Personnel Information System (IPPIS) and the Government Integrated Financial Management Information System (GIFMIS), maintaining a database of eligible retirees, and calculating the financial obligations due under the scheme.
The Budget Office of the Federation will make annual provisions based on PenCom’s estimates, while the Federal Ministry of Finance will prepare quarterly cash plans for fund releases.
Thereafter, the Office of the Accountant-General of the Federation will transfer approved funds into the dedicated CBN account for onward disbursement to beneficiaries through their Pension Fund Administrators (PFAs).
PFAs have been directed to pay beneficiaries within 10 working days of receiving remittances from PenCom.
The establishment of the ring-fenced account is expected to address longstanding concerns over delays and uncertainties associated with retirement benefit payments in the public service.
The Exit Benefit Scheme applies to workers retiring after January 1, 2026, who have served for at least 10 years.
The government also approved transitional arrangements for employees who retired between January 1 and September 30, 2026, as well as next-of-kin of eligible workers who died during the period.
Beneficiaries under the scheme are required to process their claims through their Pension Fund Administrators.
