FEC Approves 100% Gratuity Exit Benefit for Federal Civil Servants

The Federal Executive Council (FEC) has approved the implementation of a landmark Exit Benefit Scheme that will grant retiring federal civil servants a gratuity equivalent to 100 per cent of their total annual emolument. The scheme, which takes effect from January 1, 2026, marks a significant step in the Federal Government’s efforts to strengthen the welfare structure of the civil service and ensure that officers who have served the nation for a minimum of ten years retire with financial security and dignity. The approval followed extensive deliberations and technical work by an Inter-Ministerial Technical Committee established by the Office of the Head of the Civil Service of the Federation. The committee collaborated with the National Pension Commission, the Budget Office of the Federation, and the Office of the Accountant-General of the Federation to design a sustainable implementation framework. According to the government, the Exit Benefit Scheme serves as a strategic enhancement to the existing Contributory Pension Scheme. It is intended to provide retiring officers in treasury-funded ministries, extra-ministerial departments, and agencies with a substantial financial cushion at the point of retirement. Head of the Civil Service of the Federation, Mrs. Didi Esther Walson-Jack, described the approval as a watershed moment for Nigeria’s public service. She commended the Federal Executive Council for endorsing what she called a transformative policy that recognises the dedication and sacrifices of federal civil servants. In a Press Statement, by Eno Olotu, Director, Press and Public Relations Office of the Head of the Civil Service of the Federation, Walson-Jack was reported to have said, “This approval is a profound acknowledgement of the invaluable contributions of our civil servants who have devoted their productive years to public service and national development.” She noted that the new Exit Benefit Scheme significantly strengthens the retirement package available to federal officers and reinforces confidence in the government’s commitment to the welfare of civil servants. The Head of Service also stated that the initiative aligns with ongoing reforms aimed at building a more motivated, performance-driven and people-centred civil service. She added that detailed implementation guidelines for the scheme will be released in due course. The reintroduction of gratuity payments comes 22 years after Nigeria adopted the Contributory Pension Scheme. The Federal Government said the latest approval demonstrates its continued commitment to policies that improve the welfare of civil servants while deepening reforms designed to secure the future of the federal public service.

FULL LIST:PenCom, NSITF, ICRC… Tinubu makes spree of appointments in one day

    President Bola Tinubu has approved the appointment of new leaders for 10 federal agencies and a national project. On Saturday, Ajuri Ngelale, presidential spokesperson, announced the appointments in a series of press statements. Some of the appointments are subject to senate confirmation. ADEYANJU TO HEAD NLTF Tinubu appointed Tosin Adeyanju as the new executive secretary of the National Lottery Trust Fund (NLTF). “Adeyanju is an accomplished administrator and good governance advocate,” the statement reads. “The President expects the new Chief Executive Officer to ensure transparency and efficiency in the operations of the agency to actualise the objective of the NLTF as a driver of good causes in Nigeria.” OLOWORARAN APPOINTED TO HEAD PenCom The president appointed Omolola Oloworaran as the new director-general (DG) of the National Pension Commission (PenCom). Ngelale said Oloworaran’s appointment is subject to senate confirmation. “Ms Oloworaran is a finance and banking expert with many years of experience,” the statement said. “The President anticipates goal-oriented leadership to drive efficiency and superlative performance in the National Pension Commission as the prime regulator of the Nigerian pension industry.” AGARA APPOINTED NDE DG Ngelale said Tinubu also approved the appointment of Silas Agara as the new DG of the National Directorate of Employment (NDE). Agara previously served as the deputy governor of Nasarawa state under Umaru Tanko Al-Makura and was also a former special adviser on sports. The presidential spokesperson said Tinubu anticipates an overhaul of the NDE under Agara for optimal performance in designing and implementing programmes to combat mass unemployment in the country. UMAR MOHAMMED IS NEW NIHSA DG Tinubu approved the appointment of Umar Mohammed as the DG of the Nigeria Hydrological Services Agency (NIHSA). “Mr. Mohammed is an architect, and also, a construction technology and environment professional,” the statement said. “The President expects improved outcomes in the agency’s objective of operating and maintaining hydrological stations nationwide, as well as carrying out groundwater exploration and monitoring using various scientific techniques in order to provide hydrological and hydrogeological data needed for the planning, design, execution, and management of water resources and allied projects.” DAN AGUNDI TO LEAD NPC Also, the president approved the appointment of Baffa Dan Agundi as the new DG of the National Productivity Centre (NPC). Dan Agundi was a former majority leader of the Kano state house of assembly. He was also the principal registrar of the Kano high court of justice. Ngelale said the president anticipates the DG’s utmost dedication and patriotic zeal in driving the centre’s mandate of developing a national culture of excellence in operational efficiency. According to Ngelale, Tinubu also expects a performance-driven orientation toward measurable productivity in the citizenry for the overall enhancement of service delivery and quality of life across the nation. UMAR KOGO TO OVERSEE CCT Mainasara Umar Kogo was appointed as chairman of the Code of Conduct Tribunal (CCT). “Kogo is a seasoned lawyer and analyst in the fields of law, security, economy, politics, and international diplomacy,” the statement said. “The President anticipates professionalism, integrity, and fidelity to the nation in the discharge of the functions of the Office of the Chairman of the Code of Conduct Tribunal (CCT).” EWALEFOH TO HEAD ICRC Ngelale also said Jobson Ewalefoh has been appointed as the new DG of the Infrastructure Concession Regulatory Commission (ICRC). “Ewalefoh is a professional with years of experience in government and development organizations, in addition to expertise in public-private partnerships, public policy reform, and development,” Ngelale said. The presidential spokesperson said the appointment is subject to

Pension Assets Hit N16.7trn – PENCOM

The National Pension Commission (PenCOM) says its Pension Asset Under Management so far stands at an impressive N16.76 trillion.The Director General of the commission, Mrs Aisha Dahir-Umar, said this at a one-day sensitisation programme to educate the Organised Private Sector (OPS) on the Contributory Pension Scheme (CPS).The event was organised in collaboration with the Nigerian Employers Consultative Association (NECA) in Port Harcourt.Dahir-Umar said that the figure was an indication that the scheme had operated satisfactorily and effectively since its inception.She said that the sensitisation programme was to provide a platform for the stakeholders to deliberate on the current developments and challenges encountered in the implementation of the Pension Reform Act (PRA 2014) for OPS.The PenCOM boss, represented by the Head, Compliance and Enforcement Department of PenCom, Mr Bala Babangida, said that over 10 million employees had so far registered in the scheme since the implementation of the Act.According to her, at the end of the third quarter of 2023, the number of Retirement Savings Accounts (RSA) under the CPS stood at 10 million and the Pension Asset Under Management amounted to N16.76 trillion.“The 10 million plus is the registration count from the beginning of 2004, when the Act became effective.“We have in our registration database no fewer than 10 million registered RSA holders.She said that the N16.76 trillion was the pension assets that were being managed for the benefit of all retirement savings account holders.According to him, when they retire, they will get their benefits as and when due,” she said.She further said that the commission specifically deployed the Enhanced Contributors Registration System (ECRS) for the pension industry.She said that the commission, following the deployment of the ECRS, introduced the Data Recapture Exercise (DRE).She said that the DRE “mandatorily requires all RSA holders, who joined the CPS, prior to July 1, 2019, to update their information with their respective Pension Fund Administrators (PFAs).She said that the commission was saddled with the responsibility of supervising the transfer of the Nigerian Social Insurance Trust Fund (NSITF) contributions of employees into their respective RSA under the CPS.She said that contributions worth N10.20 billion had been transferred to the RSAs of 142,486 NSITF scheme contributors to date.Dahir-Umar commended NECA for offering its platform for continuous social dialogue with the members of the OPS on the implementation of the CPS.She gave assurance that the commission would always support NECA to champion programmes that would help to ensure the successful implementation of the CPS in Nigeria.She advised employers of labour to encourage their employees, who have contributed to the NSITF scheme, to liaise with their PFAs, particularly Trustfund Pensions, for guidance on how to have their contributions transferred to their RSAs.In a speech, the Director-General of NECA, Mr Adewale-Smatt Oyerinde, said that the agency, as an umbrella body of all employers of labour in the country, had at least 4,000 employers.Oyerinde was represented at the event by Mr Godfrey Agorom, the Chairman of NECA, Port Harcourt Geographical Group, comprising Rivers and Bayelsa States, who is also the OPS Chairman.He said that the private sector remained committed to the success of the pension scheme as long as its concerns were not only noted but addressed expeditiously.He said that the interactive session was organised to sensitise both the employees and employers on the overview of the CPS; compliance with the provisions of the PRA; investment of pension assets and current developments in the pension industry.He said that many employers did not know how to go about the retirement savings of their workers.“The current percentage is that the employee pays eight per cent of his monthly salary and the employer pays 10 per cent of the employees’ monthly salary.“In a month, the employee has 18 per cent of your salary set aside paid to your pension administrators, which they invest for money flow, at retirement, you have fund accumulated for you to withdraw,” Onyerinde said.

97,591 micro pension participants contribute N436m in May -PenCom

The National Pension Commission (PenCom) says the Micro Pension Plan (MPP) contributions as of May, stood at N435.61 million from 97,591 participants registered. Mr Dauda Ahmed, Head, Micro Pension Department, PenCom, revealed this on the sidelines of the maiden Micro Pension Open Day, organised by the Pension Operators Association of Nigeria (PenOp) in Lagos. The event had its theme as “Micro Pension – Challenges, Prospects for Growth and Deepening Financial Inclusion in Nigeria”. Ahmed said that the total contingent withdrawal by 150 Micro Pension Contributors (MPC) as of the month under review stood at N30.24 million. According to him, the commission recorded N6.51 million as the amount converted by 581 Retirement Savings Accounts (RSAs) holders, under the informal sector to RSA’s under the formal sector. The PenCom scribe explained that the MPP is an opportunity for workers, who are mainly in the informal sector to save for their retirement. Ahmed said that the MPP, as revised this year, is expected to extend pension coverage to over 2.2 million informal sector workers by 2024. He said, as part of incentives to embrace micro pension, PenCom was working toward adopting a minimum health insurance for eligible MPP participants. Ahmed stated that the commission was also engaging with labour unions, trade associations, and several groups on embracing the plan. Ahmed listed the challenges to the implementation of the plan including; lack of awareness, mistrust about the pension system, absence of appropriate incentives, and lack of financial literacy. According to him, the Pension Fund Administrators (PFAs) based MPP on short-term perspectives, especially in terms of financial benefits and the perceived associated cost. Ahmed blamed the PFAs for poor service delivery, an inadequate awareness campaign for the product, and slow adoption of shared services arrangements. The identified other factors impeding the implementation of the MPP as weak economic indices, inflation, and increased poverty level. Earlier, Mr Oguche Agudah, Chief Executive Officer (CEO), PenOp charged the informal sector workers to visualise how their needs would be met in next 20 to 30 years without a pension plan. Agudah noted the PFAs were concerned about improving the micro pension penetration in Nigeria, saying, “The country has the largest informal sectors who are not covered by any form of formal pension”. “We, in the pension industry, work to get as many informal sector workers as possible on a pension scheme. “Those within a structured organisation or who employ less than three persons and youths growing the informal gig economy; starting businesses on their laptop without any office, yet earning decently. “We are passionate about micro pension, as today’s event revolves around the audacious industrial goal to engage as many informal sector workers as possible, to sign up for the scheme for the benefit of everyone,” he said.