Civil servants gratuity scheme approved by FG grants retirees 100% of annual pay, enhancing welfare and financial security for federal employees

The Federal Executive Council has approved a transformative Exit Benefit Scheme granting retiring federal civil servants a gratuity equal to 100 per cent of their total annual emolument, effective from 1 January 2026.

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The announcement marks a milestone in the government’s effort to strengthen welfare and financial security for civil service personnel.

The scheme applies to officers with a minimum of 10 years of service across Treasury-funded Ministries, Extra-Ministerial Departments, and Agencies.

It complements the existing Contributory Pension Scheme, offering an additional financial safety net at retirement.

Eno Olotu, Director of Public Relations, Office of the Head of Civil Service of the Federation, disclosed the development in a statement on Thursday.

The approval follows extensive deliberations by an Inter-Ministerial Technical Committee, which collaborated with the National Pension Commission, Budget Office of the Federation, and the Office of the Accountant-General of the Federation to ensure a sustainable and effective implementation framework.

Head of the Civil Service of the Federation, Didi Walson-Jack, described the approval as a “watershed” moment, reflecting the administration’s recognition of the dedication, professionalism, and sacrifices of federal 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 initiative aligns with ongoing reforms aimed at building a motivated, performance-driven, and people-centred civil service, assuring that comprehensive implementation guidelines would be issued in due course.

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The scheme comes 22 years after the introduction of the Contributory Pension Scheme and underscores the Federal Government’s commitment to enhancing the welfare of civil servants and securing their future.