The Federal Executive Council (FEC) has approved a new gratuity package for employees in the federal civil service, introducing an exit benefit for officers retiring from service.
The approval was granted during a meeting of the council in Abuja following recommendations from an inter-ministerial technical committee set up by the Office of the Head of the Civil Service of the Federation (OHCSF).
The committee worked in collaboration with 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 the scheme.
Under the new arrangement, retiring federal civil servants in treasury-funded ministries, departments and agencies (MDAs) will receive a gratuity equivalent to 100 per cent of their total annual emoluments, representing one full year of their salary package.
The benefit will apply to officers who have served for a minimum of 10 years and will complement the existing Contributory Pension Scheme (CPS), which was introduced 22 years ago and previously operated without a gratuity component for many retirees.
The new gratuity scheme is scheduled to take effect from January 1, 2026.
Head of the Civil Service of the Federation, Didi Walson-Jack, described the approval as a significant recognition of the contributions of civil servants to national development.
According to her, the initiative will strengthen the retirement package of federal workers and boost confidence in the government’s commitment to their welfare, while also aligning with broader reforms aimed at building a more motivated and performance-driven civil service.
Also speaking, Director of Press and Public Relations at the OHCSF, Eno Olotu, said the scheme was designed to enhance the welfare structure of the federal civil service and ensure that officers who have served the country for at least a decade retire with greater financial security.
She added that detailed guidelines for the implementation of the scheme would be issued in due course.
