The Federal Government under President Bola Tinubu has approved a new gratuity package for employees in the federal civil service, marking a significant shift in retirement benefits for government workers across the country.

The decision was reached during the Federal Executive Council (FEC) meeting held on Wednesday, where members of the council endorsed the introduction of a gratuity payment for retiring federal civil servants.

The move is expected to strengthen the welfare structure within the public service and provide additional financial security for officers after retirement.

The approval follows recommendations submitted by an inter-ministerial technical committee established by the Office of the Head of the Civil Service of the Federation (OHCSF). The committee was tasked with developing a sustainable framework that would improve retirement benefits while maintaining fiscal responsibility.

The technical committee worked in collaboration with several key government institutions, including the National Pension Commission (PenCom), the Budget Office of the Federation, and the Office of the Accountant-General of the Federation.

According to the framework approved by the Federal Executive Council, the new gratuity scheme will apply to retiring federal civil servants in treasury-funded ministries, departments, and agencies (MDAs).

Gratuity Boost for Federal Workers

Under the newly approved arrangement, eligible retiring officers will receive a gratuity equivalent to 100 percent of their total annual emoluments. In practical terms, this means each qualified retiree will receive a payment equal to one full year of their total salary package.

The benefit will be available to officers who have served the federal government for at least 10 years.

Officials explained that the new gratuity package will complement the existing Contributory Pension Scheme (CPS), which has been in operation for more than two decades.

The Contributory Pension Scheme was introduced about 22 years ago as part of reforms aimed at ensuring sustainable pension management in Nigeria. However, under the previous structure, many retirees under the scheme did not receive gratuity payments alongside their pension benefits.

The newly approved policy is designed to close that gap and provide additional financial support to public servants who dedicate a significant portion of their working lives to government service.

The new gratuity scheme will officially take effect from January 1, 2026.

Government Highlights Civil Service Contributions

Reacting to the approval, the Head of the Civil Service of the Federation, Didi Walson-Jack, described the decision as a major recognition of the contributions made by civil servants to national development.

She said the initiative represents a meaningful acknowledgment of the years of dedication and service provided by federal workers across various sectors.

According to Walson-Jack, the policy will significantly enhance retirement benefits for civil servants while boosting morale within the workforce.

She also noted that the new gratuity structure aligns with ongoing reforms aimed at building a more efficient, motivated, and people-centred civil service.

The Director of Press and Public Relations at the Office of the Head of the Civil Service of the Federation, Eno Olotu, also emphasized the welfare benefits of the policy.

Olotu explained that the scheme was carefully designed to strengthen the financial security of public servants after retirement.

He noted that the policy ensures officers who have served the nation for at least a decade can leave public service with improved financial stability.

Government officials said detailed guidelines for implementing the gratuity scheme will be released soon. These guidelines will outline the operational procedures, eligibility verification process, and payment mechanisms for retiring officers.

The introduction of the gratuity package is expected to play a key role in improving confidence in Nigeria’s public service system and reinforcing the federal government’s commitment to the welfare of its workforce.