The Federal Government has approved the reintroduction of gratuity payments for retiring federal civil servants, 22 years after the introduction of the Contributory Pension Scheme.
The approval was granted by the Federal Executive Council (FEC), according to a statement issued by the Office of the Head of the Civil Service of the Federation on Thursday in Abuja.
The statement, signed by the Director of Press and Public Relations, Eno Olotu, explained that the new exit benefit scheme will grant retiring federal civil servants a gratuity equivalent to 100 per cent of their total annual emolument.
The scheme is scheduled to take effect from January 1, 2026, and is designed to strengthen the welfare structure of the federal civil service while ensuring that officers who have served the nation for a minimum of 10 years retire with improved financial security.
According to the statement, the approval followed recommendations by an inter-ministerial technical committee set up by the Office of the Head of the Civil Service of the Federation.
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 design a sustainable framework for the implementation of the scheme.
The new gratuity package is expected to complement the existing Contributory Pension Scheme and improve retirement income security for federal civil servants working in treasury-funded ministries, extra-ministerial departments, and agencies.
Head of the Civil Service of the Federation, Didi Walson-Jack, commended the Federal Executive Council for approving the initiative, describing it as a significant step toward improving the welfare of public servants.
She said the decision demonstrates that the administration of President Bola Tinubu recognizes the dedication, sacrifice, and professionalism of federal civil servants.
According to her, the scheme is a clear acknowledgement of the invaluable contributions of civil servants who have devoted their productive years to public service and national development.
Walson-Jack noted that the exit benefit would significantly enhance the retirement packages of civil servants and strengthen confidence in the government’s commitment to their welfare.
She added that the initiative also aligns with ongoing reforms aimed at building a more motivated, performance-driven, and people-centred civil service.
Detailed implementation guidelines for the scheme, she said, will be issued in due course.

