The Federal Executive Council (FEC) has approved a new exit benefit scheme that will grant retiring federal civil servants a gratuity equivalent to 100 per cent of their total annual emolument, in a move aimed at strengthening retirement welfare for government workers.
The approval was disclosed on Thursday in Abuja by the Office of the Head of the Civil Service of the Federation in a statement issued by the Director of Press and Public Relations, Mrs. Eno Olotu.
Olotu said the scheme took effect from January 1, 2026, and will apply to civil servants who have served the federal government for at least 10 years, ensuring they retire with improved financial security.
She explained that the policy followed recommendations from an inter-ministerial technical committee established by the Office of the Head of the Civil Service of the Federation.
According to her, the committee worked with key government institutions, including the National Pension Commission, the Budget Office of the Federation, and the Office of the Accountant-General of the Federation, to develop what she described as a sustainable framework for the scheme.
Olotu noted that the new gratuity arrangement would complement the existing Contributory Pension Scheme, adding that it is designed to strengthen retirement income security for federal civil servants working in treasury-funded ministries, extra-ministerial departments, and agencies.
Reacting to the development, the Head of the Civil Service of the Federation, Mrs. Didi Walson-Jack, commended the council for approving the scheme, describing it as a significant step towards recognising the contributions of civil servants.
“This approval is a profound acknowledgement of the invaluable contributions of our civil servants who have devoted their productive years to public service and national development,” Walson-Jack said.
She added that the new exit benefit would significantly improve the retirement package of civil servants and reinforce confidence in the federal government’s commitment to workers’ welfare.
“The exit benefit scheme significantly enhances the retirement package of our officers and boosts confidence in the federal government’s commitment to their welfare,” she said.
Walson-Jack further noted that the initiative aligns with ongoing reforms aimed at building a more motivated, performance-driven, and people-centred civil service.
She also announced that detailed implementation guidelines for the scheme would be released in due course.
The reintroduction of gratuity for federal civil servants comes 22 years after Nigeria introduced the Contributory Pension Scheme, marking a significant shift in the government’s retirement benefits policy.
