Nigeria’s Federal Executive Council approves a new Exit Benefit Scheme granting retiring federal civil servants 100% of their annual emolument as gratuity starting January 2026.
Nigeria Approves 100% Gratuity for Retiring Federal Civil Servants
The Federal Government of Nigeria has approved a new Exit Benefit Scheme that will grant retiring federal civil servants a gratuity equivalent to 100 percent of their total annual emolument.
The policy, approved by the Federal Executive Council (FEC), will take effect from January 1, 2026, and is aimed at improving the welfare of public servants while ensuring they retire with financial security and dignity.
New Retirement Package for Federal Workers
According to an official statement issued on Thursday by the Director of Public Relations in the Office of the Head of the Civil Service of the Federation, Eno Olotu, the new scheme represents a significant step in strengthening the welfare structure of Nigeria’s Civil Service.
Under the new policy, federal civil servants who have served the government for at least 10 years will qualify for the gratuity payment upon retirement.
The scheme is expected to benefit workers across treasury-funded ministries, extra-ministerial departments, and government agencies.
Inter-Ministerial Committee Designed the Framework
The approval followed extensive consultations and technical work by an Inter-Ministerial Technical Committee established by the Office of the Head of the Civil Service of the Federation.
The committee collaborated with key government institutions, including:
- The National Pension Commission (PenCom)
- The Budget Office of the Federation
- The Office of the Accountant-General of the Federation
Together, they developed a sustainable framework for implementing the new exit benefit structure.
Scheme to Strengthen the Pension System
Officials say the Exit Benefit Scheme will complement Nigeria’s existing Contributory Pension Scheme, which was introduced more than two decades ago.
The initiative is designed to provide an additional financial cushion for retiring workers, ensuring greater long-term income security for federal civil servants.
Head of Civil Service Commends FEC Approval
The Head of the Civil Service of the Federation, Didi Walson-Jack, described the decision as a landmark approval that reflects the government’s recognition of the dedication of public servants.
She noted that the policy demonstrates the administration’s commitment to improving workers’ welfare.
“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,” she said.
She added that the new scheme would significantly strengthen retirement packages and boost confidence in the government’s commitment to civil servants.
Part of Ongoing Civil Service Reforms
Walson-Jack explained that the initiative aligns with broader reforms aimed at building a more motivated, performance-driven, and people-centred Civil Service.
She also assured that detailed implementation guidelines for the scheme would be released soon.
First Gratuity Policy Since Pension Reform
The approval marks the first major gratuity-related policy for federal civil servants in 22 years, following the introduction of the Contributory Pension Scheme.
Government officials say the new measure underscores Nigeria’s commitment to strengthening worker welfare while implementing reforms that secure the future of the federal civil service.