NIGERIA’S Federal Executive Council (FEC) has approved a new retirement benefit scheme that will allow federal civil servants to receive a gratuity equal to their full annual pay when they exit service.
The policy, which took effect from January 1, 2026, was disclosed in a statement released on Thursday by the Office of the Head of the Civil Service of the Federation in Abuja.
Under the new arrangement, eligible federal workers will receive a lump-sum gratuity at retirement amounting to 100 percent of their total annual emolument. The payment will be made in addition to benefits already provided through the existing contributory pension scheme, which currently governs retirement savings for public sector workers.
Officials said the initiative is designed to strengthen the financial security of retiring civil servants while also improving confidence in the federal government’s welfare framework for public employees.
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To benefit from the gratuity scheme, civil servants must have served the federal government for a minimum of 10 years before leaving service. Those who meet this threshold will be entitled to the payment upon retirement, providing an additional financial cushion beyond their pension savings.
The Office of the Head of the Civil Service said the policy was the outcome of extensive consultations and technical reviews carried out by an inter-ministerial technical committee established to develop the scheme.
According to the statement, the committee worked closely with several key government institutions responsible for fiscal planning and pension regulation to ensure the programme is financially viable and properly structured.
Among the agencies involved in the process were the National Pension Commission (PenCom), the Budget Office of the Federation and the Office of the Accountant-General of the Federation. Their input, officials said, helped shape a framework intended to ensure the scheme can be implemented sustainably without undermining the existing pension system.
The collaboration focused on aligning the new gratuity benefit with Nigeria’s contributory pension architecture while also addressing long-standing concerns about retirement welfare among civil servants.
Head of the Civil Service of the Federation, Ms Didi Esther Walson-Jack,welcomed the council’s decision, describing it as a landmark policy aimed at improving the welfare and morale of public sector workers.
She said the approval reflects a recognition by the federal government of the dedication and years of service contributed by civil servants across various ministries, departments and agencies (MDAs).
According to her, the scheme sends a strong signal that the administration of President Bola Tinubu is committed to rewarding public servants who have spent their productive years supporting government programmes and national development.
“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,” Ms Walson-Jack said.
She added that the introduction of the gratuity payment would significantly strengthen the retirement package available to federal workers and reinforce confidence in the government’s commitment to their 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.
Beyond improving retirement benefits, Walson-Jack noted that the initiative forms part of broader reforms being implemented within the federal civil service to build a more motivated, efficient and performance-driven workforce.
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She said the government expects that improved welfare provisions will encourage greater commitment and productivity among serving officers, while also reassuring workers that their years of service will be recognised at the end of their careers.
The head of service added that further operational details would be communicated to MDAs once the implementation framework is finalised.
According to the statement, comprehensive guidelines outlining eligibility, payment procedures and administrative processes for the scheme will be issued in due course.
Officials say the rollout of the gratuity scheme represents one of the most significant adjustments to retirement benefits for federal civil servants in recent years, as the government seeks to strengthen incentives within the public service while maintaining fiscal sustainability.
