The Nigerian federal government has announced significant welfare improvements for public servants, featuring a N10 billion housing project managed by the Federal Mortgage Bank of Nigeria (FMBN), enhanced allowances, and a redesigned retirement benefit system. These initiatives underscore the government's commitment to prioritizing the well-being of its workforce.
Oluwaseun Faleye, Managing Director of the Nigeria Social Insurance Trust Fund (NSITF), reaffirmed the Fund's dedication to the Employee Compensation Scheme (ESC) for the benefit of Federal Civil Servants during a press conference in Abuja.
The Head of the Civil Service of the Federation (HoCSF), Esther Walson-Jack, stated that the revisions to workers' allowances represent a tangible policy shift, reflecting President Bola Tinubu's focus on worker welfare.
Walson-Jack detailed the newly approved Exit Benefit Scheme, which is designed to provide treasury-funded civil servants under the contributory pension scheme with an amount equivalent to their annual emoluments upon retirement. This scheme aims to alleviate concerns about financial insecurity after leaving public service.
Furthermore, she highlighted the operationalisation of the ESC, a social protection framework covering work-related injuries, occupational diseases, disability, and death, which supplements existing life assurance policies and broadens the safety net for government employees and their families.
To foster professional growth, the government has also sanctioned the full payment of Duty Tour Allowance (DTA) for civil servants participating in training programs at designated federal institutions, irrespective of travel needs. This measure is intended to remove financial obstacles to capacity building.
In addition to training allowances, Walson-Jack announced adjustments to estacode, book allowances, and other entitlements to align with current economic conditions and reduce the out-of-pocket expenses civil servants incur during official duties.
Addressing housing, a significant welfare concern, she revealed the approval of a N10 billion housing loan scheme to be facilitated by the FMBN and the Federal Government Staff Housing Loans Board, with both entities signing a Memorandum of Understanding (MoU) during the event.
"The federal government approved the payment of full Duty Tour Allowance, 100 per cent, for civil servants attending approved training programmes at our manpower development institutions… irrespective of whether the officer needs to travel.
...There has been a comprehensive review and increase in the Peculiar Allowance for officers on the Consolidated Public Service Salary Structure and the Consolidated Research and Allied Institutions Salary Structure. The revised allowance has been structured to reflect across all grade levels, resulting in a meaningful increase in takehome pay across different cadres. Whether you are a junior officer or a senior professional, this improvement is designed specially for you.
In addition, there has been an upward revision of the Duty Tour Allowance, Estacode, Book Allowance, and other related entitlements. These adjustments are calibrated to reflect current economic realities. A civil servant who travels on official duty should not have to subsidise accommodation from their personal pocket. That principle now has teeth.
(Also) the federal government has approved a N10 billion Housing Loan Scheme to improve access to home ownership for civil servants. This loan will be facilitated through the FMBN and the Federal Government Staff Housing Loans Board," she stated.
Shehu Osidi, the Managing Director of FMBN, described the MoU as a crucial step in providing government workers with easier access to affordable housing finance, establishing a structured framework where the bank funds loans disbursed through the Board.
He explained that the initiative aims to counteract the effects of diminishing household incomes and rising construction costs, which have made housing less attainable for many workers.
Osidi also detailed ongoing improvements within the FMBN, including process automation and enhanced service delivery, to make the institution more responsive to national housing goals.
He mentioned existing financing options like home renovation and construction loans, as well as cooperative housing schemes, alongside new products such as non-interest mortgages and rent assistance, all designed to broaden housing access.
This collaboration, he added, signifies a move towards greater institutional synergy, combining the FMBN's financial capacity with the Housing Loans Board's direct engagement with civil servants to streamline access and improve outcomes.
"Today's signing of this memorandum marks not just the beginning of a collaboration, but the dawn of a renewed commitment to improving the lives and welfare of Nigerian workers, particularly our hard-working federal civil servants, who remain the backbone of our nation's civil service," he remarked.
Faleye reiterated NSITF's commitment to strengthening the Employee Compensation Scheme and expanding its reach within the federal service.
Omolola Oloworaran, Director General of the National Pension Commission (PENCOM), outlined reforms in the pension sector focused on enhancing retirement outcomes, including faster benefit processing and plans for a minimum pension guarantee and extended health insurance for low-income retirees.
In a related announcement, the National Salaries, Incomes and Wages Commission (NSIWC) confirmed approved rates for estacode, kilometre allowances, and other entitlements for permanent secretaries and civil servants from Grade Level 01 to 17, as per the Public Service Rules (2021 Edition).
Ekpo U.O. Nua, Chairman/CEO of NSIWC, communicated these approvals in a circular dated April 23, addressed to various senior government officials.
Under the new rates, permanent secretaries will receive $1,040 daily for estacode, while senior civil servants on GL 15-17 are allocated $737 daily.
Estacode allowances were also approved at $666 daily for GL 07-14 workers and $357 daily for those on GL 01-06.
Additionally, a warm clothing allowance of $1,248 has been approved for Permanent Secretaries.
The revised kilometre allowance is set at N664 per kilometre for permanent secretaries and N531 per kilometre for directorate level workers (GL15-17).
The Duty Tour (DTA) allowance has been revised to N109,000 for civil servants on GL 16-17 and equivalents, while those on GL 14-15 and their equivalents will receive N73,000.
Civil servants on the lowest grade levels, GL 01-04 and their equivalents, are entitled to a DTA of N30,000.
The updated rates also cover approvals for teaching allowance, local running allowance (30 per cent of DTA), local course allowance, book allowance, uniform allowance, responsibility allowance, and project allowance, among others.
The circular also specified that allowances not monetized in the PSR or those approved by the National Council on Establishments/Government but not listed in the PSR, would be addressed via separate NSIWC circulars. The revised rates are effective from October 1, 2026.
Onyebuchi Ezigbo and Emmanuel Addeh contributed to this report.
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