By NIyi Jacobs
The Federal Executive Council of Nigeria has approved a new Exit Benefit Scheme that will grant retiring federal civil servants a gratuity equivalent to 100 percent of their total annual emolument, in what officials describe as a major step toward strengthening welfare within the public service.
The approval, announced by the Office of the Head of the Civil Service of the Federation, will take effect from January 1, 2026. The scheme is designed to ensure that federal civil servants who have served the nation for at least ten years retire with improved financial security and dignity.
According to the statement, the new policy represents a significant milestone in the Federal Government’s effort to enhance the welfare structure of the civil service and restore confidence in the retirement system.
The development follows extensive deliberations and technical contributions from an Inter-Ministerial Technical Committee established by the Office of the Head of the Civil Service of the Federation. The committee worked in collaboration with key institutions including the National Pension Commission, the Budget Office of the Federation and the Office of the Accountant-General of the Federation to develop an implementation framework considered both sustainable and effective.
Under the new arrangement, the Exit Benefit Scheme will complement the existing Contributory Pension Scheme by providing an additional financial cushion at retirement. The initiative specifically targets federal civil servants working in treasury-funded ministries, extra-ministerial departments and agencies.
Reacting to the decision, the Head of the Civil Service of the Federation, Didi Esther Walson-Jack, described the approval as a landmark development for the Nigerian civil service.
She said the decision demonstrates that the administration of Bola Ahmed Tinubu recognises the dedication, sacrifice and professionalism of federal civil servants who have spent their productive years serving the country.
“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,” Walson-Jack said.
She added that the Exit Benefit Scheme would significantly improve the retirement benefits available to federal civil servants and strengthen confidence in the government’s commitment to their welfare.
According to her, the initiative also aligns with ongoing public service reforms aimed at building a more motivated, performance-driven and people-centred civil service.
Walson-Jack further assured that detailed implementation guidelines for the scheme would be communicated to relevant ministries, departments and agencies in due course.
The decision marks a significant policy shift as gratuity payments are being reintroduced 22 years after the adoption of the Contributory Pension Scheme in Nigeria, which replaced the previous pension structure and removed traditional gratuity payments.
Officials say the latest approval underscores the Federal Government’s commitment to policies that enhance the welfare of workers while strengthening institutional reforms designed to secure the future of the Nigerian civil service
