FEC approves 100% annual salary as gratuity for retiring federal civil servants

The Federal Executive Council (FEC) has approved the implementation of a new Exit Benefit Scheme that grants retiring federal civil servants a gratuity equivalent to 100 per cent of their total annual emolument.

The scheme, which takes effect from January 1, 2026, is aimed at strengthening the welfare structure of the Federal Civil Service and ensuring that officers who have served the nation for at least 10 years retire with improved financial security.

This was disclosed in a 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.

According to the statement, the approval followed extensive deliberations and technical recommendations from an Inter-Ministerial Technical Committee set up by the Office of the Head of the Civil Service of the Federation.

The committee collaborated 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 develop a sustainable implementation framework for the scheme.

The Exit Benefit Scheme is designed as an enhancement to the existing Contributory Pension Scheme and will provide a significant financial cushion for retiring federal civil servants in treasury-funded ministries, extra-ministerial departments, and agencies.

Head of the Civil Service of the Federation, Didi Walson-Jack, described the approval as a landmark decision that reflects the Federal Government’s commitment to recognising the dedication of 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,” she said.

She added that the scheme would significantly improve the retirement benefits of federal workers and strengthen confidence in the government’s commitment to their welfare.

“The Exit Benefit Scheme significantly enhances the retirement package of our officers and boosts confidence in the Federal Government’s commitment to their welfare,” Walson-Jack stated.

She further noted that the initiative aligns with ongoing reforms aimed at building a more motivated, performance-driven, and people-centred civil service, assuring that detailed implementation guidelines would be released soon.

The reintroduction of gratuity for federal civil servants comes 22 years after the Contributory Pension Scheme was introduced, marking a major shift in retirement benefits within the Federal Civil Service.