By Aderonke Ojo
The Federal Executive Council (FEC) has approved a new Exit Benefit Scheme for retiring federal civil servants, aimed at improving welfare and strengthening retirement benefits in the public service.
Under the scheme, eligible retiring officers will receive a gratuity equivalent to 100 per cent of their total annual emoluments, effectively amounting to one full year of their salary package.
The development was disclosed in official statements from the Office of the Head of the Civil Service of the Federation, which explained that the new scheme will apply to federal civil servants in treasury-funded Ministries, Departments and Agencies (MDAs) operating under the Contributory Pension Scheme.
According to the office, the scheme will take effect from Jan. 1, 2026, and is expected to enhance the welfare of public servants transitioning into retirement.
It further stated that eligibility for the exit benefit will generally require a minimum of 10 years of service in the federal civil service.
The approval marks a major policy shift, as gratuity payments were not originally included in the Contributory Pension Scheme introduced in 2004 for federal workers.
Government officials noted that discussions and planning for the introduction of the gratuity component had been ongoing since mid-2025, with the new policy designed to provide additional financial support to retiring officers.
The initiative is also expected to boost morale within the civil service and reinforce the government’s commitment to improving the welfare of federal workers.
