The Nigeria Labour Congress (NLC) has welcomed the Federal Government’s approval of a 100 percent gratuity scheme for retiring federal civil servants, describing the policy as a major shift in the country’s retirement framework and a long-awaited step toward improved welfare for public workers.
President of the NLC, Joe Ajaero, gave the reaction in Abuja on Tuesday while speaking with journalists shortly after the government confirmed the new policy.
The approval, endorsed by the Federal Executive Council last week, establishes an exit benefit that guarantees retiring federal civil servants who have completed a minimum of ten years in service a gratuity equivalent to 100 percent of their annual emoluments. The payment will be made in addition to pension benefits under the Contributory Pension Scheme.
Ajaero said the decision recognises the years of dedication and service rendered by civil servants across the country. He noted that the scheme would provide retirees with immediate financial support at the point of retirement, easing the transition from active service.
According to him, the return of gratuity payments fills a long-standing gap in the current pension structure. Since the introduction of the Contributory Pension Scheme, many workers had raised concerns that pensions alone were often insufficient to meet the financial realities of retirement.
The labour leader explained that the new arrangement provides a financial buffer for retirees who have spent decades serving the nation, allowing them to meet pressing needs such as healthcare, family support, and small-scale investments after leaving public service.
Government sources indicated that the policy will take effect from January 1, 2026. It will apply to eligible workers across federal ministries, departments and agencies.
Read also:
- Delta stops granting loans to civil servants, moves to sanitize payroll system
- Delta State approves 2025 Bursary, Scholarships for Students, Children of deceased Civil Servants
- ADC accuses APC of forcing civil servants to join party through e-registration exercise
For years, organised labour had pressed for reforms in retirement benefits, arguing that the absence of gratuity under the contributory pension structure placed many retirees under financial pressure, particularly in a difficult economic climate.
Labour leaders believe the latest approval marks a turning point in the campaign for improved conditions of service within the Nigerian public sector. Analysts also say the move could strengthen morale among workers, reinforce loyalty within the civil service, and encourage higher productivity.
Beyond immediate financial relief for retirees, the policy is expected to provide former civil servants with capital that can be used to support businesses, education, healthcare and other post-service responsibilities.
Many observers see the approval as one of the most significant policy adjustments to the country’s retirement benefit system in recent years, with the potential to influence wider reforms in public sector welfare.
