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Federal Government Approves New Allowances, Housing Loans to Boost Civil Service Welfare

by Yusuf Demilola
24 April 2026
Reading Time: 3 mins read
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Federal Government Approves New Allowances, Housing Loans to Boost Civil Service Welfare
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The Federal Government has announced a comprehensive package of welfare reforms for civil servants, including increased allowances, full Duty Tour Allowance (DTA) for training, enhanced retirement benefits, and a new housing loan scheme. The measures, unveiled on Friday in Abuja by the Head of the Civil Service of the Federation, Mrs. Didi Walson-Jack, are part of ongoing efforts to reposition the civil service and improve productivity.

Walson-Jack confirmed that peculiar allowances for officers under the Consolidated Public Service Salary Structure and the Consolidated Research and Allied Institutions Salary Structure have been reviewed upward. The adjustments, she explained, were designed across all grade levels to ensure meaningful improvements in workers’ take-home pay.

In addition, civil servants attending approved training programmes at designated manpower development institutions will now receive 100 percent DTA, regardless of whether travel is required. The institutions include the Public Service Institute of Nigeria (PSIN), the Administrative Staff College of Nigeria (ASCON), and six Federal Training Centres located in Lagos, Calabar, Enugu, Maiduguri, Ilorin, and Kaduna.

“This sends a clear message that government is committed to investing in its workforce, and financial inconvenience will no longer hinder professional development,” Walson-Jack said.

The Head of Service also announced upward reviews of other allowances such as Estacode, book allowance, and official entitlements to reflect current economic realities. She noted that these adjustments were necessary to sustain morale and efficiency in the civil service.

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Furthermore, she highlighted that the Federal Executive Council had earlier approved a landmark exit benefits scheme for treasury-funded civil servants under the Contributory Pension Scheme. Effective January 1, 2026, retiring employees will receive 100 percent of their total annual emoluments as additional retirement benefits.

Walson-Jack disclosed that the Employees’ Compensation Scheme has been operationalised to provide financial support for civil servants who suffer work-related injuries, occupational diseases, disability, or death in the course of duty. This initiative complements the existing Group Life Assurance Scheme, thereby expanding social protection for workers and their families.

Another major highlight of the reforms is the introduction of a N10 billion housing loan scheme aimed at improving access to home ownership for civil servants. The loan will be facilitated through the Federal Mortgage Bank of Nigeria and the Federal Government Staff Housing Loans Board.

To activate the scheme, Walson-Jack signed a Memorandum of Understanding (MoU) with Hajiya Salamatu Ahmed, Executive Secretary of the Housing Loans Board. She emphasized that the initiative reflects President Bola Tinubu’s commitment to rewarding civil servants and strengthening the machinery of government.

The reforms are expected to have far-reaching effects on the civil service, which plays a central role in policy implementation and governance. By addressing welfare concerns, the government aims to enhance productivity, reduce attrition, and foster a more motivated workforce. Improved access to housing and retirement benefits also signals a long-term investment in the stability and well-being of public servants.

Observers note that these measures could help restore confidence in the civil service, which has often been criticized for inefficiency and low morale. By aligning allowances and benefits with economic realities, the government seeks to create a more resilient and professional public sector.

Walson-Jack urged Ministries, Departments, and Agencies (MDAs) to sustain collaboration in delivering reforms and improving public service outcomes. The implementation of the new allowances, training support, and housing loans will be closely monitored to ensure transparency and effectiveness.

As the January 2026 deadline for the new retirement benefits approaches, civil servants are expected to begin preparing for the transition under the Contributory Pension Scheme. Meanwhile, the housing loan scheme is set to roll out in phases, with details on eligibility and application procedures to be announced in the coming months.

With these reforms, the Federal Government has signaled a renewed focus on civil service welfare, positioning the sector as a cornerstone of national development. The coming years will reveal how effectively these measures translate into improved service delivery and stronger institutional capacity.

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