The Federal Executive Council (FEC) has approved a new gratuity scheme for retiring federal civil servants in Nigeria.

In a statement on Thursday, the FEC said the new gratuity scheme provides one full year’s salary for federal civil servants after 10 years of service, effective January 1, 2026, complementing the 2004 Contributory Pension Scheme that previously lacked this benefit.

“The Federal Executive Council (FEC) has approved a new exit benefit scheme that introduces a gratuity payment for retiring officers,” the statement read.

“The approval, granted during FEC meeting in Abuja, follows recommendations from an inter-ministerial technical committee established 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 to create a sustainable framework.”

Under the new scheme, retiring federal civil servants in treasury-funded ministries, departments, and agencies (MDAs) will receive a gratuity equivalent to 100% of their total annual emoluments (one full year’s salary package).

This benefit applies to officers who have served for a minimum of 10 years and complements the existing Contributory Pension Scheme (CPS), which was introduced 22 years ago and previously operated without a gratuity component for many retirees.

Head of the Civil Service of the Federation, Didi Walson-Jack, described the approval as “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 added that the initiative “significantly enhances the retirement package of our officers and boosts confidence in the federal government’s commitment to their welfare,” while aligning with broader reforms for a more motivated, performance-driven, and people-centred civil service.

Director of Press and Public Relations at the OHCSF, Eno Olotu, said: “The scheme is designed to strengthen the welfare structure of the federal civil service and ensure that officers who have served the nation for a minimum of 10 years retire with financial security.”

Detailed implementation guidelines are expected to be issued soon but the news stems from inter-ministerial recommendations aimed at enhancing welfare and morale amid economic pressures. (The Guardian)

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