FG Approves Exit Benefit Scheme Granting 100% Annual Emolument as Gratuity to Retiring Civil Servants

The Federal Executive Council has approved the implementation of a transformative Exit Benefit Scheme that grants retiring Federal Civil Servants a gratuity equal to 100 percent of their total annual emolument.

A statement issued in Abuja indicates that the new development, effective from January 1, 2026, marks a major milestone in the Federal Government’s commitment to strengthening the welfare structure of the Civil Service and ensuring that officers who have served the nation for a minimum of ten years retire with dignity and financial security.
The statement explains that the approval followed extensive deliberations and technical input from an Inter-Ministerial Technical Committee constituted by the Office of the Head of the Civil Service of the Federation.
According to the statement, the Committee worked closely 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 and effective implementation framework.
“This approval is a profound acknowledgement of the invaluable contributions of our Civil Servants who have devoted their productive years to public service and national development. The Exit Benefit Scheme significantly enhances the retirement package of our officers and boosts confidence in the Federal Government’s commitment to their welfare,” she stated.
Mrs. Walson-Jack also noted that the initiative aligns perfectly with the ongoing reform agenda aimed at building a more motivated, performance-driven, and people-centred Civil Service. She assured that comprehensive implementation guidelines would be communicated in due course.
“The payment of gratuity to Federal Civil Servants is coming 22 years after the introduction of the Contributory Pension Scheme. This approval of the Federal Executive Council is evidence that the Federal Government remains firm in its commitment to policies that promote improved welfare, while institutionalising reforms that secure the future of the Federal Civil Service,” she added.
According to the statement, the Exit Benefit Scheme is a strategic enhancement to the existing Contributory Pension Scheme framework, noting that the gratuity is specifically designed to provide a substantial financial safety net at retirement and strengthen long-term income security for workers in Treasury-funded Ministries, Extra-Ministerial Departments, and Agencies.
The statement further notes that the Head of the Civil Service of the Federation, Mrs. Didi Walson-Jack, described the initiative as aligning with the ongoing reform agenda to build a more motivated, performance-driven, and people-centred Civil Service. She described the move as a bold step that demonstrates that the Tinubu administration recognises the dedication, sacrifice, and professionalism of Civil Servants.
The Exit Benefit Scheme is coming 22 years after the introduction of the Contributory Pension Scheme.