FEC Approves 100% Gratuity for Retiring Federal Civil Servants

pensioners

FEC Approves 100% Gratuity for Retiring Federal Civil Servants

The Federal Executive Council (FEC) has approved a groundbreaking Exit Benefit Scheme that will grant retiring federal civil servants a gratuity equivalent to 100% of their total annual salary and allowances. The initiative aims to strengthen welfare and retirement security within the Nigerian civil service.

The policy, which takes effect from January 1, 2026, will benefit federal employees who have served the government for at least ten years before retirement. The scheme was announced in a statement released on Thursday by the Office of the Head of the Civil Service of the Federation in Abuja.

The new scheme marks a significant policy shift designed to enhance retirement benefits for civil servants operating under the Contributory Pension Scheme, which was introduced in 2004.

Eligible federal civil servants will receive a one-time gratuity payment equivalent to their full annual salary and allowances upon retirement, in addition to their pension benefits. Officials say the measure is intended to provide a stronger financial safety net for retirees, ensuring that civil servants who dedicate their careers to public service can retire with dignity and financial stability.

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The scheme will apply to workers in Treasury-funded Ministries, Departments, and Agencies (MDAs) across the federal government. The policy was developed after extensive deliberations and technical work by an inter-ministerial committee established by the Office of the Head of the Civil Service of the Federation. The committee collaborated with key institutions, including the National Pension Commission, the Budget Office of the Federation, and the Office of the Accountant-General of the Federation, to create a sustainable framework for implementation.

Historic Milestone for Civil Service Reform

Reacting to the approval, the Head of the Civil Service of the Federation, Didi Esther Walson-Jack, described the decision as a historic milestone in the ongoing reform of the federal civil service. She noted that the new scheme demonstrates the commitment of the administration of President Bola Ahmed Tinubu to recognizing the dedication and sacrifices of public servants.

“This approval is a profound acknowledgment 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 initiative will significantly enhance the retirement package available to federal civil servants and strengthen confidence in government policies designed to improve workers’ welfare. Detailed guidelines for the scheme’s implementation will soon be issued to guide ministries, departments, and agencies.

Reform After More Than Two Decades

The introduction of the Exit Benefit Scheme represents the first major gratuity provision for federal civil servants since the launch of the contributory pension system over twenty years ago. Analysts believe the new policy will address long-standing concerns about retirement security among government workers and boost morale within the federal civil service.

Officials highlight that the scheme aligns with broader civil service reforms aimed at creating a more motivated, performance-driven, and people-centered public service, capable of supporting Nigeria’s national development goals. The initiative underscores the government’s commitment to ensuring that civil servants who dedicate their careers to public service are adequately rewarded upon retirement.