The administration of Bola Ahmed Tinubu has approved a new gratuity package for employees in the federal civil service.
The approval was granted during a meeting of the Federal Executive Council (FEC) held on Wednesday, introducing a gratuity payment for retiring federal civil servants.
The decision followed recommendations from an inter-ministerial technical committee established by the Office of the Head of the Civil Service of the Federation (OHCSF).
The committee worked in collaboration with the National Pension Commission (PenCom), the Budget Office of the Federation, and the Office of the Accountant-General of the Federation to develop a sustainable framework for the scheme.
Under the new arrangement, retiring federal civil servants in treasury-funded ministries, departments, and agencies (MDAs) will receive a gratuity equivalent to 100 percent of their total annual emoluments—representing one full year’s salary package.
The benefit will apply to officers who have served for a minimum of 10 years and will complement the existing Contributory Pension Scheme (CPS), which was introduced 22 years ago and previously operated without a gratuity component for many retirees.
The scheme is scheduled to take effect from January 1, 2026.
The Head of the Civil Service of the Federation, Didi Walson-Jack, described the approval as a major recognition of the role played by civil servants in national development.
According to her, “This is a profound acknowledgement of the invaluable contributions of our civil servants who have devoted their productive years to public service and national development.”
She added that the initiative will improve retirement benefits for civil servants.
“It significantly enhances the retirement package of our officers and boosts confidence in the federal government’s commitment to their welfare,” she said, noting that it also aligns with broader reforms aimed at building a more motivated, performance-driven and people-centred civil service.
Also speaking, Director of Press and Public Relations at the OHCSF, Eno Olotu, said the scheme was designed to strengthen the welfare system for civil servants.
“The scheme is designed to strengthen the welfare structure of the federal civil service and ensure that officers who have served the nation for a minimum of 10 years retire with financial security,” Olotu stated.
Detailed guidelines for implementing the scheme are expected to be issued in the coming weeks.