Federal Government Explains October Salary Deductions as NHIS Contributions Begin

The Federal Government has clarified that the deductions from October 2025 salaries of civil servants were due to the commencement of statutory contributions to the National Health Insurance Scheme (NHIS).

In a circular issued in Abuja, the government explained that mandatory NHIS deductions started in October, resulting in the salary reductions observed across various Ministries, Departments, and Agencies (MDAs). The circular, titled “Implementation of Statutory Deduction for the National Health Insurance Scheme”, was released following widespread complaints on social media from federal workers regarding unexplained salary cuts ranging from N1,000 to N2,000.

The circular stated: “The Federal Government wishes to inform all federal public servants that the implementation of statutory deduction for the National Health Insurance Scheme has commenced with effect from October 2025. Accordingly, a mandatory NHIS contribution has been deducted from every federal government employee’s monthly salary beginning from the month of October. This adjustment accounts for the observed reduction in the October 2025 salary across MDAs.”

The NHIS, a social health insurance programme, aims to provide Nigerians with financial protection and access to quality healthcare. In 2022, the Federal Government made health insurance mandatory for all employers and employees in the public, private, and informal sectors following the signing of the National Health Insurance Authority Bill, 2021, by former President Muhammadu Buhari. Former Senator Dr. Yahaya Oloriegbe, the bill’s sponsor, said it would create a “robust, affordable and sustainable financial mechanism for health” and support Nigeria’s goal of achieving Universal Health Coverage by 2030. The government emphasized that the NHIS benefits workers by reducing out-of-pocket medical expenses and improving access to affordable healthcare, noting that the scheme already covers about 99% of federal employees. Last week, the President’s Chief of Staff, Femi Gbajabiamila, announced an expansion of the national health insurance coverage from 20 million to 60 million Nigerians.