FEC approves 100% exit benefit for retiring Civil Servants

The Federal Government has approved a new Exit Benefit Scheme that will grant retiring federal civil servants a gratuity equivalent to 100 per cent of their total annual emoluments.

The decision was reached at the Federal Executive Council meeting on Wednesday, presided over by Bola Ahmed Tinubu at the State House in Abuja.

Addressing State House correspondents after the meeting, the Minister of Information and National Orientation, Mohammed Idris, said the initiative will allow eligible retirees to receive benefits of up to 100 per cent of their total emoluments, in line with Section 4(4)(a) of the Pension Reform Act.

He explained that the policy is aimed at boosting morale and efficiency in the civil service by improving the welfare framework for public servants approaching retirement.

Further details were provided on Thursday by the Office of the Head of the Civil Service of the Federation in a statement issued by Eno Olotu. The statement noted that the approval followed extensive deliberations and technical input from an Inter-Ministerial Technical Committee set up by the Office of the Head of the Civil Service of the Federation.

According to Olotu, the committee worked in collaboration with the National Pension Commission, the Budget Office of the Federation and the Office of the Accountant-General of the Federation to develop a sustainable implementation framework.

The scheme, which will take effect from 1 January 2026, is considered a significant step in the Federal Government’s effort to strengthen welfare provisions within the civil service. It is expected to ensure that officers who have served the nation for at least ten years retire with greater financial security and dignity.

Exit Benefit Scheme

The Exit Benefit Scheme is designed to provide a substantial financial cushion at retirement and complements the existing Contributory Pension Scheme. It aims to reinforce long-term income security for federal civil servants working in treasury-funded ministries, extra-ministerial departments and agencies.

The Head of the Civil Service of the Federation, Didi Esther Walson-Jack, praised the Federal Executive Council for approving what she described as a landmark policy.

She said the decision reflects the administration’s recognition of the commitment and service of federal civil servants.

“This approval is a clear acknowledgement of the immense contributions of civil servants who have dedicated their productive years to public service and national development. The Exit Benefit Scheme strengthens the retirement package for officers and reinforces confidence in the Federal Government’s commitment to their welfare,” she said.

Walson-Jack also noted that the initiative supports ongoing reforms aimed at building a more motivated and performance-driven civil service. She added that detailed guidelines for implementing the scheme would be released in due course.

The reintroduction of gratuity payments comes 22 years after the adoption of the Contributory Pension Scheme. The latest decision, according to officials, underscores the government’s commitment to policies that improve workers’ welfare while strengthening long-term reforms in the federal civil service.