Federal Civil Servants to Receive 100% Gratuity from 2026

The Federal Executive Council (FEC) has approved the implementation of a new exit benefit scheme that will grant retiring federal civil servants a gratuity equal to 100% of their total annual emoluments, effective January 1, 2026. This initiative is part of President Bola Ahmed Tinubu's administration's commitment to reform the civil service and improve the welfare framework for civil servants.

The approval follows extensive deliberations and technical input from an inter-ministerial committee, which included the Director of Public Relations, Eno Olotu. Didi Walson Jack, the Minister of Labour and Employment, described the approval as a watershed moment, recognizing the dedication and sacrifices of federal civil servants.

The scheme aims to complement the existing contributory pension scheme and enhance the financial security of retiring civil servants. This decision is seen as a significant milestone in the long-standing struggle for improved welfare for federal workers, with the last gratuity payments halted following the enactment of the Pension Reform Act in 2024.