The Federal Government has confirmed that the recent deductions from the October 2025 salaries of civil servants mark the official start of mandatory contributions to the National Health Insurance Scheme (NHIS).
A circular obtained by The PUNCH in Abuja clarified that the deductions—noticed across various Ministries, Departments, and Agencies—were part of the implementation of the statutory health insurance policy. The document, titled “Implementation of Statutory Deduction for the National Health Insurance Scheme,” explained that the measure took effect in October.
This clarification followed widespread complaints from federal workers on social media about unexplained salary reductions ranging from ₦1,000 to ₦2,000.
“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 read. “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 initiative designed to protect Nigerians from financial hardship while ensuring access to quality healthcare services.
The scheme’s legal framework was strengthened in 2022 after former President Muhammadu Buhari signed the National Health Insurance Authority Bill, 2021, into law. The legislation made health insurance compulsory for all employers and employees in both public and private sectors, as well as for participants in the informal economy.
During deliberations on the bill, its sponsor, former Senator Yahaya Oloriegbe of Kwara Central, described it as a key step toward building a “robust, affordable, and sustainable financial mechanism for health,” aimed at achieving Universal Health Coverage by 2030.
The Federal Government insists the NHIS will ultimately benefit workers by improving access to affordable and quality healthcare while reducing out-of-pocket medical spending.
It also noted that about 99 per cent of federal employees are already enrolled in 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 under the current administration.
