FEC Approves 100% Gratuity for Retiring Civil Servants

On Thursday, the Federal Executive Council (FEC) approved a new exit benefit scheme that will grant retiring federal civil servants a gratuity equivalent to 100% of their total annual emoluments. This significant policy shift, disclosed by Walson Jack, the head of the Office of the Head of Civil Service of the Federation (OHCSF), will take effect on January 1, 2026.

The initiative is designed to strengthen the welfare framework for federal civil servants and provide additional financial security upon retirement. The gratuity scheme will apply to civil servants who have served the federal government for a minimum of 10 years and is intended to complement the existing contributory pension scheme rather than replace it.

The approval follows recommendations from an inter-ministerial technical committee tasked with reviewing retirement welfare for federal civil servants. The scheme aims to align with existing fiscal realities and improve the retirement package for federal employees, thereby boosting morale across the civil service.

The FEC also confirmed the alignment of the proposal with the 2026-2028 Medium Term Expenditure Framework during a special meeting in Abuja.