The Federal Executive Council (FEC) has approved a new exit benefit scheme granting retiring federal civil servants a gratuity equivalent to 100 percent of their total annual emolument, marking a significant shift in Nigeria’s public service retirement structure.
The approval was granted during a council meeting presided over by President Bola Ahmed Tinubu at the State House in Abuja. The decision introduces a structured gratuity payment for federal workers who retire from service, in addition to the benefits already available under the Contributory Pension Scheme.
Voice of Nigeria Broadcasting Service Under the new framework, eligible federal civil servants will receive a lump-sum gratuity equal to their last full annual salary package at the point of retirement. The benefit is designed to strengthen financial security for public servants after active service and provide an additional layer of income support alongside their pension entitlements.
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Officials disclosed that the scheme officially takes effect from January 1, 2026. It will apply to workers in treasury-funded ministries, departments and agencies of the federal government. The policy is also structured to ensure that officers who have served for at least ten years in the federal civil service can qualify for the benefit when they retire.
The Office of the Head of the Civil Service of the Federation explained that the initiative emerged from recommendations made by an inter-ministerial technical committee established to review retirement benefits within the civil service.
The committee worked in collaboration with the National Pension Commission, the Budget Office of the Federation, and the Office of the Accountant-General of the Federation to design a financially sustainable framework for the policy.
Head of the Civil Service of the Federation, Didi Walson-Jack, described the approval as a major recognition of the contributions of career public servants. She noted that the new exit benefit strengthens the overall retirement package of civil servants and reinforces government commitment to improving welfare across the federal workforce.
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The reintroduction of gratuity marks a notable development in Nigeria’s public service compensation system, coming more than two decades after the adoption of the Contributory Pension Scheme, which had largely replaced traditional gratuity arrangements in the federal civil service.
Source :LIB
