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The Federal Executive Council (FEC) has approved the implementation of a new Exit Benefit Scheme that will grant retiring Federal Civil Servants a gratuity equal to 100 percent of their total annual emolument.
Effective from January 1, 2026, the scheme is aimed at strengthening the welfare structure of the Federal Civil Service and ensuring that officers who have served the nation for at least ten years retire with improved financial security.
The approval followed extensive deliberations and technical contributions from an Inter-Ministerial Technical Committee constituted by the Office of the Head of the Civil Service of the Federation. The committee collaborated 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 implementing the scheme.
According to the Office of the Head of the Civil Service of the Federation, the Exit Benefit Scheme is designed as a strategic enhancement to the existing Contributory Pension Scheme. It will provide an additional financial safety net for Federal Civil Servants at retirement, particularly those serving in Treasury-funded Ministries, Extra-Ministerial Departments, and Agencies.
The Head of the Civil Service of the Federation, Mrs. Didi Esther Walson-Jack, described the approval as a significant step toward recognising the dedication and contributions of public servants.
She said the decision reflects the commitment of President Bola Ahmed Tinubu’s administration to improving the welfare of Federal Civil Servants and strengthening confidence in the nation’s public service system.
“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.
Walson-Jack also noted that the initiative aligns with ongoing reforms aimed at building a more motivated, performance-driven, and people-centred Civil Service. She added that detailed implementation guidelines would be communicated in due course.
The reintroduction of gratuity payments for Federal Civil Servants comes 22 years after the introduction of the Contributory Pension Scheme, marking a major shift in retirement benefits within the public service.
The Federal Government said the approval demonstrates its continued commitment to policies that improve the welfare of public servants while advancing reforms designed to secure the future of the Federal Civil Service.
The statement was issued by Eno Olotu, Director of Press and Public Relations, Office of the Head of the Civil Service of the Federation, on March 5, 2026.
