The development was outlined in an implementation guideline for the scheme, which sets out the operational framework for the initiative.
The document, signed by the Head of the Civil Service of the Federation, Didi Walson-Jack, stated that the account would be domiciled at the CBN and managed by the National Pension Commission (PenCom) as the central platform for all scheme-related funds.
It read, “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.”
It further explained the purpose of the arrangement, saying, “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.”
The creation of the dedicated account forms part of key reforms introduced after the Federal Executive Council approved the Exit Benefit Scheme, which is aimed at improving post-service welfare for federal workers.
Under the scheme, employees of treasury-funded Ministries, Departments and Agencies (MDAs) who have served for at least 10 years will be entitled to a lump sum payment equivalent to 100 per cent of their total annual emoluments upon retirement or disengagement.
The circular stated that the scheme became effective from January 1, 2026, and is designed to strengthen welfare support for federal employees at the end of their service.
It read, “The Exit Benefit Scheme is designed to enhance the welfare of eligible Federal Government employees upon their exit from Service.
“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.”
The guideline clarified that the new arrangement does not replace the Contributory Pension Scheme, but operates alongside it as an additional benefit for retiring workers.
“For the avoidance of doubt, the introduction of the Exit Benefit Scheme is complementary to the ongoing Contributory Pension Scheme. The existing Pension Scheme continues in operation,” it stated.
Funding for the scheme will be drawn from the Federal Government budget and other approved allocations, with the dedicated CBN account serving as the official channel for inflows and disbursements.
According to the document, “The account shall receive releases from the FGN annual budget, including any special provisions that may be granted.”
It also confirmed that the scheme will be fully funded by government as a non-contributory welfare package for eligible employees of MDAs.
“The Exit Benefit Scheme shall be fully funded by the government as a non-contributory, post-exit entitlement for eligible employees of Treasury-funded Ministries, Departments and Agencies,” it added.
The guideline further described the initiative as a statutory welfare measure aimed at strengthening support for workers after years of public service.
“This funding responsibility underscores the scheme’s status as a statutory welfare initiative, and reinforces the government’s commitment to supporting employees with additional benefits upon exiting from the service after a minimum of 10 years,” it stated.
Under the implementation structure, PenCom will retrieve and verify data from the Integrated Payroll and Personnel Information System (IPPIS) and the Government Integrated Financial Management Information System (GIFMIS), maintain a database of eligible retirees, and compute the financial obligations under the scheme.
The Budget Office of the Federation will handle annual budgetary provisions based on PenCom’s estimates, while the Federal Ministry of Finance will prepare quarterly cash plans for fund releases.