The Federal Executive Council (FEC) has approved a new exit benefit scheme that will grant retiring federal civil servants a gratuity payment.
The approval, announced at an FEC meeting in Abuja, follows recommendations from an inter-ministerial technical committee set up by the Office of the Head of the Civil Service of the Federation (OHCSF). The committee worked alongside the National Pension Commission (PenCom), the Budget Office of the Federation, and the Office of the Accountant-General to design a sustainable framework.
Under the scheme, federal civil servants in treasury-funded ministries, departments, and agencies (MDAs) who retire after at least 10 years of service will receive a gratuity equal to 100% of their total annual emoluments. The benefit complements the existing Contributory Pension Scheme (CPS), which has been in place for 22 years but previously offered no gratuity for many retirees.
The new scheme takes effect from January 1, 2026.
Didi Walson-Jack, Head of the Civil Service of the Federation, described the approval 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 added that it “significantly enhances the retirement package of our officers and boosts confidence in the federal government’s commitment to their welfare.”
Eno Olotu, Director of Press and Public Relations at OHCSF, said the initiative “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 financial security.”
Implementation guidelines for the scheme are expected to be released soon.
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