The Federal Government has explained that deductions from the October 2025 salaries of civil servants were due to the start of statutory contributions to the National Health Insurance Authority (NHIA).
In a circular obtained by The Punch in Abuja, the government clarified that mandatory NHIA contributions began in October, accounting for the salary reductions noticed across various Ministries, Departments and Agencies (MDAs). The circular was titled, “Implementation of Statutory Deduction for the National Health Insurance Scheme.”
The clarification comes after widespread complaints by federal workers on social media about 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 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 a social health insurance programme designed to provide Nigerians with financial protection and access to quality healthcare.
In 2022, the Federal Government made health insurance compulsory for all employers and employees in the public, private and informal sectors after former President Muhammadu Buhari signed the National Health Insurance Authority Bill, 2021, into law.
During legislative debates, the bill’s sponsor and former senator for Kwara Central (2019–2023), Dr Yahaya Oloriegbe, described it as a framework to establish a “robust, affordable and sustainable financial mechanism for health” while advancing Nigeria’s goal of Universal Health Coverage by 2030.
The government noted that the NHIA will benefit workers by improving access to affordable and quality healthcare and reducing out-of-pocket medical costs. It added that about 99 per cent of federal employees are already covered under the scheme.
Last week, the President’s Chief of Staff, Femi Gbajabiamila, revealed that the government has expanded national health insurance coverage from 20 million to 60 million Nigerians.
