FG clarifies NHIS deductions from October salaries, saying cuts reflect the start of mandatory health insurance contributions for civil servants

NHIS deductions from the October 2025 salaries of federal civil servants were caused by the commencement of statutory contributions to the National Health Insurance Scheme, the Federal Government has explained.

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The clarification followed widespread complaints from workers across Ministries, Departments and Agencies (MDAs) who noticed unexplained salary reductions ranging from ₦1,000 to ₦2,000.

In a circular titled “Implementation of Statutory Deduction for the National Health Insurance Scheme”, the government stated that the deductions marked the start of mandatory contributions required by law.

“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 said.

“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 deductions are part of efforts to strengthen the national health insurance framework, which aims to provide financial protection and access to quality healthcare for Nigerians.

The National Health Insurance Authority Act, signed into law in 2022 by former President Muhammadu Buhari, mandates all employers and employees in public, private and informal sectors to obtain health insurance.

During legislative debates, the bill’s sponsor and former senator representing Kwara Central, Dr Yahaya Oloriegbe, described the law as a step towards building a “robust, affordable and sustainable financial mechanism for health,” aligning with Nigeria’s goal of achieving Universal Health Coverage by 2030.

According to the government, the NHIS deductions will ultimately benefit workers by reducing out-of-pocket medical costs and improving access to affordable healthcare services. It noted that about 99 per cent of federal employees are already covered under the scheme.

Last week, the Chief of Staff to the President, Femi Gbajabiamila, announced that national health insurance coverage had expanded from 20 million to 60 million Nigerians, underscoring the government’s commitment to inclusive health financing.

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By clarifying the deductions, the government hopes to reassure civil servants that the new policy represents an investment in their long-term wellbeing rather than a pay cut.