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 March 5
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.
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 schools,” she said.
Another civil servant, Wale Ogunnaike, a Deputy Director who is retiring in July, put the benefits of the reintroduced gratuity in perspective, to justify the big 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 exploitative 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 will 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 what he will receive will complement his pension’s lump sum payment, for tangible investment.
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 that is befitting for 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
Mrs Alice Ita also commended the Federal Government for the decision, noting that it had raised the hope of civil servants still in active service.
According to her, the reintroduction of gratuity for federal civil servants has been applauded as a major relief, bringing renewed confidence to workers.
“It will reduce the constant worry about what to do after retirement and the challenges of accessing pension. It is indeed a big relief,” she said.
Ita urged the National Assembly to review the Contributory Pension Scheme Act, to allow retirees access, at least, 50 per cent of their total savings without encumbrance.
Specifically, she called for the removal of the inhibiting clause in the Act which provides that, the lump sum can only be taken if the remaining balance can still provide at least 50 per cent of the retiree’s final salary as monthly pension.
Another civil servant, Mr. Obinna Ibe described return of gratuity as welcome, noting that civil servants face numerous economic challenges.
“When you look at what is happening in Nigeria, everybody goes to the same market whether you work in the Central Bank, NNPC, multi-national companies or the core civil service.
“The gratuity will cushion the problems faced by many retirees in core civil service,” he said.
Ibe also stressed the need for prompt payment of the benefits to retirees.
“If someone exits service this month, the system should be automated in such a way that the person receives the benefit immediately.
“There should not be bureaucratic bottlenecks or any gap between the period of retirement and the commencement of the payment,” he said.
He also called for improved welfare for civil servants, including salary reviews to reduce disparities across government agencies.
For his part, Mr Michael Samson described gratuity as a “plan B’’ for civil servants after retirement.
According to him, the lump-sum payment can help retirees stabilise their lives and even start small businesses.
“Gratuity is very essential for civil servants because it gives them hope of life after retirement.
“Many civil servants worry about how they will survive after leaving service.
“With gratuity, retirees can plan their lives better and have something to fall back on, after years of service,” Samson said.
No doubt, the reintroduction of gratuity has rekindled hope among civil servants, many of whom had long worried about financial security after retirement.
Workers believe the lump-sum payment will complement pension savings, enabling retirees to invest, support their families and manage life after decades of service.
However, they urge the government to ensure prompt and transparent implementation so the policy truly delivers the relief and confidence it promises to Nigeria’s workforce. (NAN)
