FG Approves 100% Gratuity for Retiring Federal Civil Servants Starting 2026

The Federal Government has approved a new Exit Benefit Scheme that will allow retiring federal civil servants to receive a gratuity equivalent to 100 percent of their total annual emolument.

The decision was reached during the Federal Executive Council (FEC) meeting held on Wednesday at the State House in Abuja and presided over by President Bola Ahmed Tinubu.

Briefing State House correspondents after the meeting, the Minister of Information and National Orientation, Mohammed Idris, explained that the scheme will enable eligible retirees to receive benefits of up to their full annual earnings, in line with Section 4(4)(a) of the Pension Reform Act.

According to the minister, the initiative is aimed at improving efficiency, motivation, and morale within the federal civil service by strengthening welfare provisions for workers nearing retirement.

In a statement released on Thursday, the Office of the Head of the Civil Service of the Federation said the approval followed extensive consultations and technical work by an Inter-Ministerial Technical Committee established by the office.

The statement, signed by Eno Olotu, noted that 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 and effective implementation framework.

The scheme will take effect from January 1, 2026, marking a major step in the government’s efforts to strengthen the welfare system of the federal civil service. It is designed to ensure that officers who have served the nation for at least ten years retire with dignity and improved financial security.

Strengthening Retirement Benefits
The Exit Benefit Scheme is intended to complement the existing Contributory Pension Scheme by providing a significant financial safety net at retirement. It will apply to federal civil servants working in Treasury-funded ministries, extra-ministerial departments, and agencies.

The Head of the Civil Service of the Federation, Didi Esther Walson-Jack, described the approval as a landmark decision and commended the Federal Executive Council for supporting the initiative.
She said the move demonstrates that the administration of President Tinubu recognizes the dedication and sacrifices 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 reinforces confidence in the Federal Government’s commitment to their welfare,” she said.

Walson-Jack added that the initiative aligns with ongoing reforms aimed at building a more motivated, performance-driven, and people-centred civil service. She assured that detailed implementation guidelines will be released soon.

The reintroduction of gratuity payments to federal civil servants comes 22 years after the adoption of the Contributory Pension Scheme, signaling the government’s renewed commitment to policies that improve workers’ welfare while strengthening long-term reforms in the federal civil service.