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Retiring State House staff benefit from new gratuity scheme in Nigeria

By Africazine

The Nigerian government is set to enhance retirement benefits for federal civil servants with a new gratuity scheme.

President Bola Tinubu’s administration has approved a gratuity payment for retiring civil servants, which will take effect from January 1, 2026. This scheme will provide a gratuity equivalent to one year’s basic salary for officers who have served at least 10 years, in addition to their pensions.

Nigeria’s New Gratuity Scheme for Civil Servants

The Permanent Secretary of the State House, Temitope Peter Fashedemi, announced the new gratuity scheme during a send-off ceremony for retiring directors. He emphasized the importance of recognizing the dedication of public servants who have devoted decades to national service.

This initiative is part of a broader effort to improve the welfare of federal workers, as outlined in the Federal Civil Service Strategy and Implementation Plan 2021–2025. The scheme aims to complement the existing Contributory Pension Scheme, which does not include gratuity payments.

Nigeria: Key figures on gratuity scheme

  • Gratuity equivalent to one year’s basic salary
  • Eligibility after at least 10 years of service
  • Effective from January 1, 2026

Context of the Gratuity Scheme Approval

The Federal Executive Council approved the gratuity scheme in March 2026, following recommendations from an inter-ministerial technical committee. This committee was tasked with enhancing retirement benefits for civil servants and ensuring they receive adequate recognition upon retirement.

Fashedemi highlighted that the new policy reflects the government’s commitment to staff welfare and the recognition of civil servants’ contributions to the nation. The State House has also implemented programs to honor outstanding officers during their service and at retirement.

Next Steps for Implementation

  • Gratuity payments to commence on January 1, 2026
  • Continued recognition programs for retiring civil servants

The new gratuity scheme marks a significant step in enhancing the retirement benefits of Nigeria’s civil servants.

Retiring State House staff benefit from new gratuity scheme in Nigeria

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