Nigeria begins N19.1bn in pension and severance payments

The Nigerian Federal Government has initiated two major disbursement programs to settle outstanding retirement and severance obligations.

Under the Federal Government Exit Benefit Scheme, approximately N1.1 billion has been paid to 175 retirees from Treasury-funded Ministries, Departments, and Agencies who exited the service between January and August 2026. The scheme, which provides an additional benefit equivalent to 100 per cent of an employee's total annual emolument for those with at least 10 years of service, is supported by a N32.9 billion appropriation for 2026. The National Pension Commission is coordinating the process with various federal offices to ensure funds are credited to retirees' accounts.

Separately, the government has disbursed N18 billion in severance benefits to 2,700 former employees of the defunct Nigeria Airways. Following a directive from President Bola Tinubu, Minister of Finance Taiwo Oyedele announced that 2,100 beneficiaries across seven batches have received payment, with the remaining 600 workers in the final two batches expected to be paid shortly. This settlement addresses obligations that have remained outstanding for over two decades following the airline's liquidation. The payment process involved extensive biometric verification to ensure funds reached legitimate claimants.