FEC 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 equivalent to 100 per cent of their total annual emolument, in a move aimed at strengthening retirement welfare in the public service.

The scheme, which will take effect from January 1, 2026, is designed to ensure that civil servants who have served the nation for a minimum of 10 years retire with improved financial security and dignity.

Announcing the development, the Head of the Civil Service of the Federation, Didi Esther Walson-Jack, described the approval as a landmark decision that reinforces the Federal Government’s commitment to the welfare of civil servants.

According to her, the initiative marks a major policy shift in the country’s retirement framework, particularly for officers in treasury-funded Ministries, Extra-Ministerial Departments and Agencies under the federal government.

The approval followed extensive technical consultations led by the Office of the Head of the Civil Service of the Federation through an inter-ministerial technical committee. The committee worked 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 design a sustainable implementation framework.

Walson-Jack said the new scheme would serve as a strategic enhancement to the existing Contributory Pension Scheme, providing a substantial financial buffer for civil servants at retirement.

“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. 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.

She added that the initiative aligns with ongoing reforms aimed at building a more motivated, performance-driven and people-centred civil service.

The Head of Service assured that detailed guidelines for the implementation of the scheme would be released in due course to guide ministries, departments and agencies.

The approval also marks a major development in Nigeria’s public service pension structure, coming 22 years after the introduction of the Contributory Pension Scheme.

Government officials say the move demonstrates the administration of Bola Ahmed Tinubu’s resolve to strengthen social protection for public servants while deepening institutional reforms across the federal civil service.