The Federal Government has confirmed that deductions made from the October 2025 salaries of civil servants are due to the commencement of statutory contributions to the National Health Insurance Scheme (NHIS).
According to a circular obtained by Hobnob News in Abuja, the government explained that the mandatory NHIS deductions officially began in October, resulting in the salary reductions observed across Ministries, Departments, and Agencies (MDAs).
The document, titled “Implementation of Statutory Deduction for the National Health Insurance Scheme,” clarified that the deductions were in line with the implementation of the health insurance policy for federal workers.
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 move comes amid widespread complaints by federal workers on social media about unexplained salary cuts ranging from ₦1,000 to ₦2,000.
The NHIS is a social health insurance programme designed to provide financial protection and access to affordable, quality healthcare for Nigerians.
In 2022, the Federal Government made health insurance compulsory for all employers and employees in the public, private, and informal sectors after former President Muhammadu Buhari signed the National Health Insurance Authority Bill, 2021, into law.
The sponsor of the bill, former Senator Yahaya Oloriegbe (Kwara Central, 2019–2023), said the legislation established a “robust, affordable, and sustainable financial mechanism for health” to drive Nigeria’s progress toward achieving Universal Health Coverage by 2030.
The government reiterated that the NHIS would ultimately benefit workers by improving access to healthcare services and reducing out-of-pocket medical expenses, noting that the scheme currently covers about 99 per cent of federal employees.
Last week, the Chief of Staff to the President, Femi Gbajabiamila, announced that the administration had expanded national health insurance coverage from 20 million to 60 million Nigerians.
