FEC approves gratuity for federal workers

In a historic and morale-boosting decision, the Federal Executive Council (FEC) has approved the implementation of a transformative Exit Benefit Scheme that grants retiring Federal Civil Servants a gratuity equal to 100% of their total annual emolument.

Effective from 1 January 2026, this landmark scheme signifies a major milestone in the Federal Government’s commitment to strengthening the welfare architecture of the Civil Service and ensuring that officers who have devoted a minimum of ten years of service to the nation retire with dignity and financial security.

The approval followed extensive deliberations and technical input from an Inter-Ministerial Technical Committee constituted by the Office of the Head of the Civil Service of the Federation (OHCSF).

This is contained in a statement on Thursday by Mrs Eno Olotu, Director, Press and Public Relations OHCSF.

The committee worked closely with the National Pension Commission, the Budget Office of the Federation, and the Office of the Accountant-General of the Federation to design a sustainable and impactful implementation framework.

According to her, the Exit Benefit Scheme is a strategic enhancement to the existing Contributory Pension Scheme framework.

“It is specifically designed to offer a substantial financial safety net at retirement, strengthening long-term income security for Federal Civil Servants in Treasury-funded Ministries, Extra-Ministerial Departments, and Agencies,” Olotu said.

She also quoted Mrs. Didi Esther Walson-Jack, the Head of the Civil Service of the Federation (HCSF), as commending the Federal Executive Council for what she called a watershed approval.

Mrs Walson-Jack described it as a bold move that clearly shows that President Bola Ahmed Tinubu’s administration recognises the dedication, sacrifice, and professionalism of Federal Civil Servants.

“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 stated.

Mrs Walson-Jack also noted that the initiative aligns perfectly with the ongoing reform agenda to build a more motivated, performance-driven, and people-centred Civil Service. She assured that comprehensive implementation guidelines would be communicated in due course.

The payment of gratuity to Federal Civil Servants is coming 22 years after the introduction of the Contributory Pension Scheme.

This approval of the FEC is evidence that the Federal Government remains firm in its commitment to policies that promote improved welfare, while institutionalising reforms that secure the future of the Federal Civil Service.