The Federal Executive Council (FEC), chaired by President Bola Tinubu, has approved a significant new exit benefit scheme that introduces gratuity payments for federal civil servants retiring under the Contributory Pension Scheme (CPS).
The approval was granted during the FEC meeting held on Wednesday at the State House in Abuja. It follows detailed recommendations from an inter-ministerial technical committee coordinated by the Office of the Head of the Civil Service of the Federation (OHCSF), working closely with the National Pension Commission (PenCom), the Budget Office of the Federation, and the Office of the Accountant-General to ensure a financially sustainable structure.
Under the new policy, retiring officers in treasury-funded ministries, departments, and agencies (MDAs) will be entitled to a gratuity payment equal to 100% of their total annual emoluments—equivalent to one full year’s salary package.
The benefit applies to civil servants who have completed a minimum of 10 years of service and provides a valuable addition to the existing CPS, which was introduced 22 years ago and had previously not included a gratuity component for most retirees.
The scheme will take effect from January 1, 2026.Didi Esther Walson-Jack, Head of the Civil Service of the Federation, welcomed the decision as “a profound acknowledgement of the invaluable contributions of our civil servants who have devoted their productive years to public service and national development.”
She noted that the initiative “significantly enhances the retirement package for our officers, strengthens confidence in the federal government’s commitment to their welfare,” and supports ongoing efforts to create a more motivated, performance-driven, and people-centered civil service.
Eno Olotu, Director of Press and Public Relations at the OHCSF, stated: “The scheme is designed to strengthen the welfare structure of the federal civil service and ensure that officers who have served the nation for a minimum of 10 years retire with greater financial security.”
Detailed guidelines for the implementation of the gratuity scheme are expected to be issued in the coming weeks by the relevant authorities.
The approval addresses long-standing calls for improved retirement benefits under the CPS framework and marks an important step toward enhancing the overall welfare and morale of Nigeria’s federal civil service workforce.
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