The Federal Government has approved a new Exit Benefit Scheme for federal civil servants, allowing eligible retirees to receive gratuity equal to 100 percent of their total annual salary at the end of their service.
The decision was endorsed by the Federal Executive Council (FEC) during a meeting chaired by President Bola Ahmed Tinubu.
The new policy will officially take effect from January 1, 2026, marking a major reform aimed at strengthening retirement benefits for government workers.
Under the newly approved scheme, federal civil servants who have served for at least 10 years in government ministries, departments, and agencies will receive the gratuity payment upon retirement.
The initiative is designed to ensure workers exit public service with improved financial security.
Government Strengthens Civil Service Welfare
The announcement was made in a statement issued by the Office of the Head of the Civil Service of the Federation.
Head of the Civil Service, Didi Esther Walson-Jack, described the approval as a major milestone in improving civil service welfare in Nigeria.
According to her, the scheme recognizes the dedication and long-term contributions of federal employees who have spent decades working in public service.
She noted that the new gratuity package will boost morale among civil servants, strengthen confidence in government policies, and support ongoing efforts to build a more efficient and performance-driven public service system.
Exit Benefit Scheme to Complement Pension System
The Exit Benefit Scheme will operate alongside Nigeria’s Contributory Pension Scheme, which was introduced more than two decades ago to reform retirement savings for workers.
The new gratuity payment will apply specifically to treasury-funded Ministries, Extra-Ministerial Departments, and Agencies (MDAs) across the federal government.
Officials explained that the policy was developed after extensive consultations by an inter-ministerial technical committee that worked with key institutions responsible for pension administration and government budgeting.
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 create a sustainable framework for implementing the scheme.
What the New Gratuity Means for Retiring Civil Servants
With the introduction of the 100 percent gratuity policy, retiring civil servants will receive an additional financial cushion alongside their pension benefits.
Government officials say detailed implementation guidelines will be released soon to clarify payment processes and eligibility requirements.
The reform reflects the Federal Government’s broader commitment to improving retirement benefits, enhancing worker welfare, and building a more motivated Nigerian civil service.
