FG Approves 100% Gratuity for Retiring Federal Civil Servants

The Federal Executive Council (FEC) has approved a new Exit Benefit Scheme that will grant retiring federal civil servants a gratuity equal to 100% of their total annual emolument, the Office of the Head of the Civil Service of the Federation has announced.

Effective January 1, 2026, the landmark policy aims to strengthen the welfare structure of the federal civil service and ensure that officers who have served the nation for at least ten years retire with financial security and dignity.

In a statement issued in Abuja by the Director of Press and Public Relations, Mrs. Eno Olotu, the scheme was designed following recommendations from an inter-ministerial technical committee that worked with the National Pension Commission, the Budget Office of the Federation, and the Office of the Accountant-General of the Federation to develop a sustainable implementation framework.

According to the statement, the new benefit will complement the existing Contributory Pension Scheme and provide a substantial financial safety net at retirement for eligible civil servants working in treasury-funded ministries, extra-ministerial departments, and agencies.

The Head of the Civil Service of the Federation, Mrs. Didi Esther Walson-Jack, described FEC’s approval as “a bold step that recognises the dedication, sacrifice, and professionalism of federal civil servants.” She noted that the initiative reinforces confidence in the government’s commitment to worker welfare and aligns with ongoing reforms to build a motivated, performance-driven, and people-centred civil service.

Walson-Jack said detailed implementation guidelines will be issued in due course.

The move to reintroduce gratuity after 22 years of the Contributory Pension Scheme marks a major shift in retirement benefits policy for Nigeria’s federal workforce and is expected to boost morale and financial security for retirees.