What this means
Under the Federal Exit Benefit Scheme, which took effect on 1 January 2026, a retiring federal officer who qualifies receives a gratuity equal to 100% of one year's total emolument — basic salary, housing allowance and transport allowance added together for a full year. It is paid once, at retirement, in addition to the pension built up in your Retirement Savings Account under the Contributory Pension Scheme.
Who qualifies
- You retire from a treasury-funded federal ministry, department or agency.
- You are under the Contributory Pension Scheme (CPS).
- You have completed at least 10 years of service.
Worked example
An officer retires after 22 years with a monthly basic salary of ₦520,000, housing allowance of ₦210,000 and transport allowance of ₦85,000. Monthly emolument is ₦815,000, so annual emolument is ₦815,000 × 12 = ₦9,780,000 — and the gratuity is 100% of that: ₦9,780,000, paid once, on top of the CPS pension. An officer with only 8 years of service does not qualify yet and receives ₦0 under this scheme, with the CPS pension unaffected.
Next steps
- Keep your records straight. Your gratuity is based on your final emolument, so make sure your service record and pay details with your MDA are correct well before retirement.
- Stay in touch with your PFA. Your Pension Fund Administrator handles your RSA; the gratuity is processed at retirement through PenCom and the Office of the Head of the Civil Service of the Federation (OHCSF).
- Payments have begun. Payments for 2026 retirees under the scheme have started — if you retired in 2026 and qualify, follow up with your PFA and MDA if yours has not arrived.
Frequently asked questions
Sources: National Pension Commission (PenCom) · Office of the Head of the Civil Service of the Federation (OHCSF) — Federal Exit Benefit Scheme, effective 1 January 2026. Estimate only — the official body decides the final amount at retirement; this page is not financial advice.
Who qualifies for the federal gratuity?
Retiring officers of treasury-funded federal ministries, departments and agencies who are under the Contributory Pension Scheme (CPS) and have completed at least 10 years of service. The Federal Exit Benefit Scheme applies from 1 January 2026.
How much is the gratuity?
100% of your total annual emolument at retirement — one full year of basic salary plus housing allowance plus transport allowance. It is a flat amount; there is no sliding scale.
Does the gratuity replace my pension?
No. It is paid in addition to your normal CPS pension from your Retirement Savings Account. Your pension continues exactly as before.
When and how is it paid?
It is processed at retirement through PenCom, the Office of the Head of the Civil Service of the Federation (OHCSF) and your Pension Fund Administrator (PFA). Payments for 2026 retirees have begun.
I have served 8 years. What do I get?
Under this scheme, nothing yet — the gratuity needs at least 10 years of service. Your CPS pension is not affected; it builds up from your RSA contributions as normal.