FEC approves 100% gratuity for retiring federal civil servants

The Federal Executive Council has approved a new exit benefit scheme that will grant retiring federal civil servants a gratuity equivalent to 100 per cent of their total annual emolument.

The Office of the Head of the Civil Service of the Federation disclosed this in a statement issued on Thursday in Abuja by its Director of Press and Public Relations, Mrs Eno Olotu.

According to Olotu, the scheme will take effect from January 1, 2026, and is designed to strengthen the welfare structure of the federal civil service by ensuring that officers who have served the nation for a minimum of 10 years retire with improved financial security.

She explained that the approval followed recommendations by an inter-ministerial technical committee set up by the office to review and develop the framework for the scheme.

The committee worked in collaboration with the National Pension Commission, the Budget Office of the Federation and the Office of the Accountant-General of the Federation to design a sustainable structure for its implementation.

Olotu added that the new exit benefit would complement the existing Contributory Pension Scheme and further strengthen retirement income security for federal civil servants in treasury-funded ministries, extra-ministerial departments and agencies.

The Head of the Civil Service of the Federation, Didi Walson-Jack, commended the council for approving the scheme.

She described the decision as a bold step that reflects the commitment of President Bola Ahmed Tinubu’s administration to recognising the dedication and service 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,” she said.

Walson-Jack added that the exit benefit scheme would significantly enhance the retirement package of civil servants and boost confidence in the government’s commitment to their welfare.

She noted that the initiative also aligns with ongoing reforms aimed at building a more motivated, performance-driven and people-centred civil service.

According to her, detailed implementation guidelines for the scheme will be released in due course.

The reintroduction of gratuity for federal civil servants comes 22 years after the introduction of the contributory pension system in the country.