FEC approves 100% gratuity for retiring federal civil servants

Nigeria’s Federal Executive Council (FEC) has approved a new exit benefit scheme that will grant retiring federal civil servants a gratuity equivalent to 100% of their total annual emolument, marking a major policy shift in the country’s public service retirement structure.

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

According to the statement, the gratuity scheme will take effect from January 1, 2026, and is designed to strengthen the welfare framework for federal civil servants while providing additional financial security at retirement.

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What FEC is saying

Under the new arrangement, civil servants who have served the federal government for a minimum of 10 years will qualify to receive a gratuity payment equivalent to their total annual earnings upon retirement.

The government explained that the initiative is not a replacement for the existing Contributory Pension Scheme (CPS) but rather a complementary benefit aimed at improving retirement income for federal public servants. The scheme will apply to officers working in treasury-funded ministries, extra-ministerial departments, and agencies across the federal government.

• _“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. _
• “The exit benefit scheme significantly enhances the retirement package of our officers and boosts confidence in the federal government’s commitment to their welfare,” she said.

According to the OHCSF, the approval followed recommendations from an inter-ministerial technical committee set up to review retirement welfare in the federal civil service.

The committee worked with key government institutions, including the National Pension Commission (PenCom), the Budget Office of the Federation, and the Office of the Accountant-General of the Federation to develop a sustainable framework for implementing the scheme.

The collaboration, the office noted, was intended to ensure that the gratuity structure aligns with existing fiscal realities while strengthening the long-term financial security of retiring civil servants.

• Reacting to the development, the Head of the Civil Service of the Federation, Mrs. Didi Walson-Jack, commended the Federal Executive Council for approving the initiative, describing it as a strong signal of the government’s recognition of the role civil servants play in national development.
• She noted that the approval reflects the administration of President Bola Ahmed Tinubu’s commitment to improving the welfare of federal public servants and rewarding years of service to the country.

Walson-Jack added that the scheme would significantly improve retirement packages for federal employees while also boosting morale across the civil service.

**What you should know **

In 2025, Nairametrics earlier reported that the Federal Executive Council (FEC) had approved N58.47 trillion budget proposal for the 2026 fiscal year.

The approval was granted on Friday at a special FEC meeting in Abuja and confirmed by Budget Office Director-General Tanimu Yakubu during a post-meeting briefing.

Nairametrics reports that this came ahead of President Bola Tinubu’s presentation of the 2026 Appropriation Bill to the National Assembly.

Yakubu said the approved proposal aligns with the 2026–2028 MTEF and Fiscal Strategy Paper, reviewed by the Council for the 2026 budget preparations.

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