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FG Approves Allowance Increase, N10bn Housing Scheme for Civil Servants

The Federal Government has unveiled a comprehensive welfare package for public workers, including increased allowances, a N10 billion housing initiative, and a new retirement benefit structure aimed at improving the living standards of civil servants.

The reforms were announced in Abuja by the Head of the Civil Service of the Federation, Esther Walson-Jack, who described the measures as a major step toward prioritising workers’ welfare under the administration of Bola Ahmed Tinubu.

At the centre of the package is the approval of an Exit Benefit Scheme, designed to provide retiring civil servants under the contributory pension system with a payout equivalent to their total annual earnings. The initiative is expected to address long-standing concerns over financial insecurity after retirement.

The government also confirmed the full implementation of the Employee Compensation Scheme, managed by the Nigeria Social Insurance Trust Fund, which covers work-related injuries, occupational diseases, disability, and death, thereby strengthening social protection for federal workers.

In a move to support professional development, the government approved 100 percent payment of Duty Tour Allowance (DTA) for civil servants attending official training programmes, regardless of travel requirements. Additional adjustments were also made to estacode, book allowance, and other entitlements to reflect current economic realities.

Walson-Jack noted that the revised allowances, including an increase in the Peculiar Allowance across salary structures, are expected to boost take-home pay across all cadres of the civil service.

On housing, the government approved a N10 billion loan scheme to be implemented through the Federal Mortgage Bank of Nigeria in collaboration with the Federal Government Staff Housing Loans Board. The initiative aims to improve access to affordable home ownership for civil servants.

Managing Director of the FMBN, Shehu Osidi, described the partnership as a strategic effort to streamline housing finance and expand access through structured lending frameworks.

He added that ongoing reforms within the bank—including automation, improved service delivery, and new mortgage products, are designed to enhance efficiency and support national housing goals.

Also speaking, Managing Director of the NSITF, Oluwaseun Faleye, reaffirmed the agency’s commitment to strengthening the Employee Compensation Scheme and expanding its reach among federal workers.

Meanwhile, the Director-General of the National Pension Commission, Omolola Oloworaran, outlined ongoing pension reforms, including faster benefit processing, the introduction of a minimum pension guarantee, and plans to extend health insurance coverage to low-income retirees.

The government said the combined measures are aimed at improving welfare, enhancing productivity, and ensuring long-term financial security for Nigeria’s civil servants.

Emeka Chukwudumebi

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