The Federal Executive Council (FEC) has approved the implementation of a new Exit Benefit Scheme that will grant retiring federal civil servants a gratuity equivalent to 100 per cent of their total annual salary.
The scheme, which will take effect from January 1, 2026, is expected to significantly enhance retirement benefits for officers who have served the country for at least 10 years in the federal civil service.
The approval represents one of the most significant welfare reforms for federal workers in recent years and underscores the government’s effort to ensure civil servants retire with improved financial security.
The development was disclosed in a statement sent to News Point Nigeria 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 new scheme will provide a gratuity equal to a full year’s total emolument for retiring federal civil servants.
The policy is designed to strengthen the welfare framework of the civil service while offering a stronger financial safety net for employees at the end of their service.
Officials explained that the scheme will apply to federal civil servants working in treasury-funded ministries, extra-ministerial departments and government agencies.
The approval followed months of deliberations and consultations by an Inter-Ministerial Technical Committee set up by the Office of the Head of the Civil Service of the Federation.
The committee worked in collaboration with several government institutions, including the National Pension Commission, the Budget Office of the Federation and the Office of the Accountant-General of the Federation.
These agencies jointly developed a framework to ensure the scheme is sustainable while also delivering meaningful financial support to retiring workers.
Government officials clarified that the Exit Benefit Scheme is not a replacement for the existing pension system but rather a strategic enhancement of the Contributory Pension Scheme introduced in 2004.
Under the new arrangement, eligible civil servants will receive the gratuity in addition to their pension benefits, thereby improving their overall retirement package.
The initiative is expected to provide stronger income security for retired civil servants and help reduce financial uncertainty after leaving public service.
Reacting to the decision, the Head of the Civil Service of the Federation, Didi Walson-Jack, described the approval as a watershed moment for the Nigerian civil service.
She said the policy demonstrates the commitment of the administration of Bola Ahmed Tinubu to recognising the dedication and sacrifice of public 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.
Walson-Jack added that the scheme will significantly enhance retirement benefits while strengthening confidence in the government’s commitment to workers’ welfare.
According to her, the policy also aligns with ongoing reforms aimed at building a more efficient, motivated and performance-driven civil service.
She assured that comprehensive guidelines on the implementation of the scheme would be communicated to relevant ministries and agencies in due course.
The development is particularly notable because it comes 22 years after the introduction of the Contributory Pension Scheme, which effectively replaced the old gratuity system.
The new approval by the Federal Executive Council signals a renewed effort by the federal government to improve the welfare of its workforce while institutionalising reforms aimed at securing the future of the civil service.