The Federal Executive Council (FEC) has approved a new Exit Benefit Scheme that will allow retiring Federal Civil Servants to receive a gratuity equal to 100 per cent of their total annual earnings.
The scheme, scheduled to begin on January 1, 2026, aims to ensure that civil servants who have spent at least 10 years in the Federal Civil Service leave service with improved financial security and dignity.
The approval was confirmed in a statement issued by Eno Olotu, Director of Public Relations in the Office of the Head of the Civil Service of the Federation.
According to the statement, the decision followed detailed discussions and technical recommendations from an Inter-Ministerial Technical Committee established by the Office of the Head of the Civil Service.
The committee worked alongside the National Pension Commission, the Budget Office of the Federation and the Office of the Accountant-General of the Federation to develop a workable and sustainable framework for the scheme.
The Exit Benefit Scheme is designed to complement the existing Contributory Pension Scheme by providing an additional financial cushion for federal employees working in treasury-funded ministries, extra-ministerial departments and government agencies.
Head of the Civil Service of the Federation, Didi Walson-Jack, described the approval as a landmark step for federal workers. She said the decision reflects the administration’s recognition of the commitment and sacrifices made by civil servants in the service of 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. The Exit Benefit Scheme significantly enhances the retirement package of our officers and boosts confidence in the Federal Government’s commitment to their welfare,” she said.
Walson -Jack added that the policy aligns with ongoing reforms aimed at building a more motivated, efficient and people-focused Civil Service. She also assured that detailed guidelines on how the scheme will be implemented will be released soon.
The return of gratuity payments to federal civil servants comes 22 years after the introduction of the Contributory Pension Scheme, underscoring the government’s efforts to strengthen welfare policies and improve retirement benefits for public servants.