Civil Servants excited over reintroduction of gratuity by Tinubu

Some civil servants have expressed delight over the reintroduction of gratuity in the federal civil service, describing it as a major relief that will ease financial burdens after retirement.

The workers, who spoke with the News Agency of Nigeria (NAN) in separate interviews in Abuja, said the move marked a return to the “good old days” of enhanced retirement benefits for civil servants.

NAN reports that the Federal Executive Council (FEC) on 5 March approved a new exit benefit scheme that introduces a gratuity payment for retiring officers.

Under the new scheme, retiring federal civil servants in treasury-funded ministries, departments, and agencies will receive a gratuity equivalent to 100 per cent of their total annual emoluments, that is, one full year’s salary package.Tinubu

The benefit applies to officers who have served for a minimum of 10 years and complements the existing Contributory Pension Scheme (CPS), which was introduced 22 years ago and previously operated without a gratuity component for many retirees.

Hajia Safia Umaru said she was excited when she heard the news from a colleague.

“This is a very big relief from financial constraints after retiring from service. I used to be afraid whenever I heard what retirees go through after leaving the service without enough money at hand.

“If such money comes in a lump sum, one can plan to build a house, establish a business, and even continue sponsoring children’s education, because many of us retire while our children are still in school,” she said.

Another civil servant, Wale Ogunnaike, a Deputy Director who is retiring in July, highlighted the benefits of the reintroduced gratuity to explain the relief it will bring to retirees.

“I am billed to retire in three months’ time, and the total savings in my contributory pension scheme is about N20 million.

“With the unfavourable and restrictive provisions in the Contributory Pension Scheme Act, I am only entitled to 25 per cent of the contribution, about N5 million, to be paid to me in a lump sum.

“The balance of 75 per cent, about N15 million, will be paid to me on a monthly basis for 10 years, 120 months, at approximately N125,000 per month.

“My worry has been that, with Nigeria’s economic situation, what business could I start with N5 million after putting in 35 years in service?” he queried.

Ogunnaike said the reintroduction of gratuity has brought great succour because it will complement his pension lump sum, enabling tangible investments.

According to him, with his current monthly gross earnings of about N500,000, the anticipated gratuity to be paid to him will be about N6 million.

“With N5 million pension lump sum and N6 million gratuity payments, I can make reasonable and wise investment decisions befitting a retired civil servant of my status.

“I want to commend and thank President Bola Tinubu and the Head of Service, Didi Walson-Jack, for this new exit benefit, which will greatly improve our retirement package,” he said.

Ogunnaike, however, appealed for prompt and unhindered implementation of the gratuity so that the joy of civil servants will not be cut short.

Civil Servants excited over reintroduction of gratuity by Tinubu