FEC approves 100% annual salary as gratuity for retiring federal workers

The Federal Executive Council (FEC) has approved the implementation of 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 scheme, which takes effect from 1 January 2026, is designed to ensure that officers who have served for at least 10 years in the Federal Civil Service retire with dignity and financial security.

A statement signed on Thursday by Eno Olotu, Director of Public Relations in the Office of the Head of the Civil Service of the Federation, confirmed the approval.

The decision follows extensive deliberations and technical input from an Inter-Ministerial Technical Committee, which was constituted by the Office of the Head of the Civil Service. 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, impactful implementation framework.

The Exit Benefit Scheme complements the existing Contributory Pension Scheme, providing a substantial financial safety net for federal officers in treasury-funded ministries, extra-ministerial departments, and agencies.

Didi Walson-Jack, Head of the Civil Service of the Federation, described the approval as a watershed moment for federal employees. She said the decision demonstrates the Tinubu administration’s recognition of the dedication, sacrifice, and professionalism 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. 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.

She added that the initiative aligns with ongoing reforms aimed at creating a more motivated, performance-driven, and people-centred Civil Service, and assured that detailed implementation guidelines would be issued in due course.

The payment of gratuity to Federal Civil Servants comes 22 years after the introduction of the Contributory Pension Scheme, highlighting the government’s continued focus on strengthening welfare policies and securing the future of the Civil Service.