FEC approves 100% annual pay as gratuity for retiring federal civil servants

The Federal Executive Council (FEC) has approved a new exit benefit scheme that will provide retiring federal civil servants with a gratuity equal to 100 percent of their total annual emoluments.

The policy, which will take effect from January 1, 2026, was disclosed on Thursday in a statement issued by the Office of the Head of the Civil Service of the Federation in Abuja.

Under the arrangement, civil servants who have served the federal government for at least 10 years will receive the gratuity upon retirement. The payment will be made in addition to benefits already provided under the existing contributory pension scheme.

According to the statement, the approval followed extensive deliberations and technical recommendations from an inter ministerial committee established by the Office of the Head of the Civil Service of the Federation.

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 design what it described as a sustainable framework for implementing the policy.

Didi Esther Walson Jack, Head of the Civil Service of the Federation, praised the council for approving the initiative, describing it as a significant move to improve the welfare of federal civil servants.

She said the decision shows that the administration of President Bola Tinubu recognises the dedication and sacrifices of public 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,” she said.

“The exit benefit scheme will greatly enhance the retirement package of officers and strengthen confidence in the federal government’s commitment to their welfare.”

Walson Jack added that the initiative forms part of broader reforms aimed at building a more motivated and performance driven civil service, noting that detailed guidelines for implementing the policy will be released in due course.