By Joshua Tosin Ogunsakin 
The Federal Government has clarified that deductions from civil servants’ October 2025 salaries were due to the commencement of statutory contributions to the National Health Insurance Scheme (NHIS).
A circular obtained by The Punch, titled ‘Implementation of Statutory Deduction for the National Health Insurance Scheme’, revealed that mandatory NHIS deductions began in October, resulting in reductions across Ministries, Departments, and Agencies (MDAs).
The clarification follows complaints from federal workers on social media over unexplained salary cuts ranging from N1,000 to N2,000.
“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,” the circular stated.
It added: “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 is a social health insurance programme designed to provide Nigerians with financial risk protection and improve access to quality healthcare.
In 2022, the Federal Government mandated health insurance for all employers and employees in the public, private, and informal sectors following the signing of the National Health Insurance Authority Bill, 2021, into law by former President Muhammadu Buhari.
During National Assembly debates, the bill’s sponsor and former senator representing Kwara Central (2019–2023), Dr. Yahaya Oloriegbe, said the law would establish a “robust, affordable and sustainable financial mechanism for health” and support Nigeria’s goal of achieving Universal Health Coverage by 2030.
The government noted that the NHIS would benefit workers by improving access to affordable and quality healthcare while reducing out-of-pocket medical expenses. Currently, about 99 per cent of federal employees are covered under the scheme.
Last week, the President’s Chief of Staff, Femi Gbajabiamila, highlighted that the government had expanded national health insurance coverage from 20 million to 60 million Nigerians, a move expected to increase access to affordable healthcare across sectors.