Nigeria’s Federal Executive Council 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 approval was granted at a Federal Executive Council meeting presided over by President Bola Tinubu at the State House, Abuja, on Wednesday, 4th of March, with Minister of Information and National Orientation Mohammed Idris announcing the development to State House correspondents after the meeting. He noted that the directive is in accordance with Section 4(4)(a) of the Pension Reform Act.
The scheme, which takes effect from January 1, 2026, is designed to strengthen the welfare structure of the federal civil service and ensure that officers who have served the nation for a minimum of 10 years retire with financial security.
The approval followed recommendations by an inter-ministerial technical committee set up by the Office of the Head of the Civil Service of the Federation, which worked with the National Pension Commission, the Budget Office of the Federation, and the Office of the Accountant-General of the Federation to develop a sustainable framework for the scheme.
The Exit Benefit Scheme is described as a strategic enhancement to the existing Contributory Pension Scheme framework, covering federal civil servants in treasury-funded ministries, extra-ministerial departments, and agencies.
Head of the Civil Service of the Federation Didi Esther Walson-Jack commended the Federal Executive Council for what she described as a watershed approval, noting that the initiative aligns with the ongoing reform agenda aimed at building a more motivated, performance-driven, and people-centred civil service.
The reintroduction of gratuity for federal civil servants comes 22 years after the introduction of the Contributory Pension Scheme in 2004, and the government has assured that comprehensive implementation guidelines will be communicated to civil servants in due course.
A retired civil servant, Dr. Doris Emmanuel, welcomed the initiative, noting that the absence of gratuity over the years had contributed to anxiety, uncertainty, and financial hardship often faced by retirees immediately after leaving service.
