FG Clarifies October Salary Deductions, Cites Commencement of NHIS Contributions

The Federal Government has explained that the deductions made from the October 2025 salaries of civil servants were due to the commencement of statutory contributions to the National Health Insurance Authority (NHIA).

In Abuja, the government said the mandatory NHIA deductions officially began in October, resulting in the reduction observed across Ministries, Departments, and Agencies (MDAs).

The document, titled “Implementation of Statutory Deduction for the National Health Insurance Scheme,” was issued to clarify widespread complaints by federal workers on social media over unexplained salary cuts ranging between ₦1,000 and ₦2,000.

According to the government, the policy marks the official rollout of the NHIA scheme, which seeks to provide sustainable funding and universal access to quality healthcare for Nigerian workers and their dependents.

The circular noted that the deductions were consistent with the National Health Insurance Authority Act of 2022, signed into law by former President Muhammadu Buhari, which made health insurance mandatory for all employers and employees across public, private, and informal sectors.

“The Federal Government wishes to inform all federal public servants that the implementation of statutory deduction for the National Health Insurance Authority has commenced with effect from October 2025,” the circular stated.

“Accordingly, a mandatory NHIA 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 NHIA is designed to provide financial protection and improved healthcare access to Nigerians. Officials said the scheme currently covers about 99 per cent of federal employees, with the government targeting expanded coverage nationwide. Last week, the Chief of Staff to the President, Femi Gbajabiamila, announced that national health insurance coverage had increased from 20 million to 60 million Nigerians.