The Federal Government is set to implement a gratuity scheme for civil servants in treasury-funded Ministries, Departments, and Agencies (MDAs) under the Contributory Pension Scheme (CPS). This initiative is a joint effort between the National Pension Commission (PenCom) and the Office of the Head of the Civil Service of the Federation (OHCSF).
The development was announced following a high-level meeting held on June 13, 2025, in Abuja. According to a statement by PenCom on Tuesday, the commission’s Director General, Omolola Oloworaran, paid a courtesy visit to the Head of Civil Service, Mrs. Didi Esther Walson-Jack, to advance discussions on the plan.
Oloworaran said the scheme aligns with Section 4(4)(a) of the Pension Reform Act (PRA) 2014, allowing for a one-time gratuity payment alongside regular pension benefits for retiring employees of treasury-funded MDAs.
“It’s a modest but impactful intervention to improve the welfare of retiring civil servants,” she said.
She further revealed that PenCom and the 2024 Stakeholders Committee on outstanding pension liabilities have estimated the scheme’s annual cost at N30 billion, assuming retirees are paid 100% of their last gross annual remuneration.
The move is seen as a significant step in addressing the welfare concerns of retiring federal workers and reinforcing confidence in Nigeria’s public pension system.
