Nigeria Approves Full-Year Gratuity for Retiring Federal Civil Servants Nationwide
Oluwafunbi Bello 
The Federal Executive Council chaired by President Bola Tinubu
ABUJA, Nigeria – Nigeria’s Federal Government approves a landmark Exit Benefit Scheme granting retiring civil servants a gratuity equivalent to their full annual earnings, marking a significant shift in public sector retirement welfare.
The decision is approved by the Federal Executive Council (FEC) chaired by President Bola Tinubu, with implementation set to begin January 1, 2026.
According to a statement issued by the Office of the Head of the Civil Service of the Federation on Thursday, the scheme applies to officers in treasury-funded Ministries, Extra-Ministerial Departments and Agencies who have completed at least 10 years of service.
The policy introduces a one-off lump-sum payment equivalent to an officer’s entire annual salary, complementing the Contributory Pension Scheme introduced in 2004.
Officials say the initiative aims to address a longstanding gap in Nigeria’s civil service retirement structure.
Head of the Civil Service of the Federation, Didi Walson-Jack, describes the approval as a major milestone in recognising the contributions of public servants.
“This approval is a profound acknowledgement of the invaluable contributions of our civil servants who have devoted their productive years to national development,” she says.
She adds that the scheme strengthens financial security for retirees.
“The Exit Benefit Scheme significantly enhances the retirement package of our officers and boosts confidence in the Federal Government’s commitment to their welfare.”
The framework is designed by an Inter-Ministerial Technical Committee working with the National Pension Commission, Budget Office of the Federation, and the Office of the Accountant-General to ensure financial sustainability.
Policy observers note the reform comes 22 years after the introduction of the contributory pension system, which replaced the old defined-benefit scheme but eliminated gratuity payments.
Government officials say detailed implementation guidelines will be released soon.
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Hussaini Ibrahim 
Koko Maxwella 
Oluwatobi Adu