FEC Approves 100% Annual Emolument As Gratuity For Retiring Civil Servants

The Federal Executive Council (FEC) has approved the implementation of a transformative Exit Benefit Scheme that grants retiring federal civil servants a gratuity equal to 100 per cent of their total annual emolument, effective January 1, 2026.

The approval, which followed extensive deliberations and technical input from an Inter-Ministerial Technical Committee, marked a milestone in the government’s commitment to strengthening the civil service’s welfare architecture and ensuring that officers who have served for at least 10 years retire with dignity and financial security.

In a statement yesterday, the director of Press and Public Relations in the Office of the Head of the Civil Service of the Federation, Eno Olotu, said “the scheme is a strategic enhancement to the existing Contributory Pension Scheme framework.”

It is specifically designed to offer a substantial financial safety net at retirement, strengthening long-term income security for federal civil servants in Treasury-funded Ministries, Extra-Ministerial Departments and Agencies.

The Inter-Ministerial Technical Committee constituted by the Office of the Head of the Civil Service of the Federation 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 impactful implementation framework.

The head of the Civil Service of the Federation, Mrs Didi Esther Walson-Jack, commended FEC for what she called a watershed approval.

Walson-Jack described it as a bold move that shows that President Bola Tinubu’s administration recognises the dedication, sacrifice and professionalism of Federal Civil Servants.

“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.

According to the statement, the payment of gratuity to federal civil servants comes 22 years after the introduction of the Contributory Pension Scheme.