FG Commences Health Insurance Deductions from Employees’ Salaries

The Federal Government has confirmed that deductions from the October 2025 salaries of civil servants were made to begin statutory contributions to the National Health Insurance Scheme (NHIS).

According to a circular issued in Abuja, the government explained that the deductions marked the official commencement of mandatory NHIS contributions, which led to the slight reduction noticed in the October pay across Ministries, Departments, and Agencies.

The circular, titled “Implementation of Statutory Deduction for the National Health Insurance Scheme,” addressed concerns raised by workers on social media over unexplained salary cuts ranging from ₦1,000 to ₦2,000.

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

“Accordingly, a mandatory NHIS contribution has been deducted from every federal employee’s monthly salary beginning from October. This explains the reduction observed in the October salary across MDAs.”

The NHIS is a social health insurance initiative 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 the signing of the National Health Insurance Authority Bill, 2021, into law by former President Muhammadu Buhari.

The law’s sponsor, former senator Yahaya Oloriegbe, had stated that the reform would establish a sustainable financial mechanism for healthcare and advance Nigeria’s goal of achieving Universal Health Coverage by 2030.

Government officials noted that the NHIS aims to improve healthcare access for workers and reduce out-of-pocket expenses, with coverage now extended to nearly 99 per cent of federal employees.

Recently, 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.