Staff of federal universities, polytechnics and colleges of education may not benefit from the Federal Government’s newly approved exit benefit scheme for civil servants, according to details emerging from the policy.
The new gratuity arrangement, approved by the Federal Executive Council on March 5, 2026, provides retiring federal civil servants with a one-off lump-sum payment equivalent to 100 per cent of their last gross annual salary.
Under the scheme, eligible retirees with at least 10 years of service will receive the tax-free gratuity in addition to their regular pension under the Contributory Pension Scheme.
For instance, a civil servant earning a monthly gross salary of ₦350,000 before retirement would receive about ₦4.2 million as gratuity after retirement.
The scheme took effect from January 1, 2026.
However, indications from statements credited to the Office of the Head of Civil Service of the Federation and pension authorities suggest that the policy applies strictly to workers in treasury-funded Ministries, Departments and Agencies.
This means only federal civil servants whose salaries are paid directly from the federal treasury and managed under the core civil service structure are expected to benefit.
Workers in the headquarters of federal ministries, extra-ministerial departments and certain treasury-funded agencies are among those covered by the policy.
Meanwhile, staff members of federal universities, polytechnics, colleges of education and many self-funded parastatals are reportedly excluded from the scheme.
The development has generated concern among workers in tertiary institutions, especially academic and non-academic staff under the Contributory Pension Scheme.
According to available details, federal universities are excluded because they operate separate payroll and personnel systems despite receiving government subventions.
Unlike core civil service MDAs integrated into the central treasury structure, universities and many tertiary institutions manage their own payroll systems and were not included in the approved gratuity framework.
Under the existing Contributory Pension Scheme introduced in 2004, many university workers retire with monthly pensions and lump sums generated from their Retirement Savings Accounts, but without an additional government-funded gratuity.
Some workers have expressed fears that the latest policy may widen disparities between core civil servants and employees of federal tertiary institutions.
The Federal Government has yet to issue any formal clarification on whether the gratuity scheme could later be extended to universities, polytechnics and colleges of education.
