The administration of President Bola Tinubu has approved a new gratuity package for employees of the federal civil service, marking a significant enhancement to retirement benefits.

The decision, ratified during the Federal Executive Council (FEC) meeting on Wednesday, introduces a gratuity payment for retiring officers. The approval follows recommendations from an inter-ministerial technical committee set up by the Office of the Head of the Civil Service of the Federation (OHCSF). The committee collaborated closely with the National Pension Commission (PenCom), the Budget Office of the Federation, and the Office of the Accountant-General of the Federation to design a sustainable framework.

Under the new scheme, federal civil servants retiring from treasury-funded ministries, departments, and agencies (MDAs) will receive a gratuity equal to 100% of their total annual emoluments—effectively one full year’s salary. The benefit applies to officers who have served for at least 10 years and complements the existing Contributory Pension Scheme (CPS), which was introduced 22 years ago and previously operated without a gratuity component for many retirees. The scheme takes effect on January 1, 2026.

The Head of the Civil Service of the Federation, Didi Walson-Jack, described the approval as “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 “significantly enhances the retirement package of our officers and boosts confidence in the federal government’s commitment to their welfare,” while aligning with broader reforms aimed at creating a motivated, performance-driven, and people-centred civil service.

Eno Olotu, Director of Press and Public Relations at the OHCSF, emphasized that “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.”