Civil servants across Nigeria have welcomed the reintroduction of gratuity in the federal civil service, describing it as a major relief that will ease financial pressures after retirement.
The development marks the first time in 22 years that retiring officers will receive a lump-sum payment in addition to their contributory pensions.
On March 5, the Federal Executive Council (FEC) approved the new exit benefit scheme, which provides retiring federal civil servants in treasury-funded ministries, departments, and agencies with a gratuity equivalent to 100 percent of their total annual emoluments, effectively one full year’s salary.
The benefit applies to officers who have served a minimum of 10 years and complements the existing Contributory Pension Scheme, which has operated without a gratuity component for many retirees.
Several civil servants expressed joy at the development. Safia Umaru said she was overjoyed when she heard the news from a colleague. Wale Ogunnaike, a deputy director scheduled to retire in July, explained that the gratuity would significantly boost his post-retirement plans.
“With N5 million pension lump sum and N6 million gratuity payments, I can make reasonable and wise investment decisions that are befitting for a retired civil servant of my status,” he said, urging prompt implementation of the scheme.
Alice Ita noted that the gratuity would reduce anxieties about post-retirement life and called on the National Assembly to review the pension act to allow retirees access to at least 50 percent of their total savings.
Obinna Ibe described the return of gratuity as a welcome relief given current economic challenges, while Michael Samson referred to it as a “plan B” that could help retirees stabilise their lives and even start small businesses.
The move has been widely praised as a step towards restoring the “good old days” of enhanced retirement benefits, offering civil servants a tangible safety net after decades of service.
By Emmanuel Obisue, Abuja
