The Federal Government has approved a new Exit Benefit Scheme that will grant retiring federal civil servants a gratuity equivalent to the full value of their annual emoluments, ending a 22-year gap in gratuity payments within Nigeria’s public service.
The decision was approved by the Federal Executive Council (FEC) and takes effect from January 1, 2026. The scheme applies to officers who have served a minimum of ten years in Treasury-funded Ministries, Extra-Ministerial Departments, and Agencies.
The new benefit is designed as an addition to the Contributory Pension Scheme (CPS) introduced in 2004, which replaced the former pension structure but did not include gratuity payments for federal civil servants. Officials say the new arrangement will strengthen retirement security and improve welfare for career officers.
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The approval followed extensive consultations and policy work by an Inter-Ministerial Technical Committee set up by the Office of the Head of the Civil Service of the Federation. The committee worked closely with the National Pension Commission, the Budget Office of the Federation, and the Office of the Accountant-General of the Federation to design a framework considered fiscally sustainable while delivering meaningful retirement benefits.
Reacting to the development, the Head of the Civil Service of the Federation, Didi Esther Walson-Jack, described the decision as a landmark reform for the country’s civil service.
“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 Exit Benefit Scheme will significantly improve the retirement package available to federal officers and reinforce 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.
According to her, the new policy also aligns with the broader public service reform agenda of the administration of Bola Ahmed Tinubu, aimed at building a civil service that is motivated, performance-driven and people-centred.
She further disclosed that detailed implementation guidelines would soon be issued to ministries, departments and agencies to ensure smooth rollout of the scheme.
“The scheme fits squarely within our broader reform agenda to build a civil service that is motivated, performance-driven and people-centred. Detailed implementation guidelines will be released to the relevant ministries and agencies in due course,” she said.
The reinstatement of gratuity payments is widely viewed as a significant morale boost for federal workers, many of whom have long raised concerns about retirement security.
With the new approval, the Federal Government signals a renewed commitment to strengthening retirement benefits and institutionalising reforms aimed at protecting the long-term financial wellbeing of those serving in the nation’s public service.
