The Oyo State chapter of the Nigeria Union of Local Government Employees (NULGE) has expressed strong opposition to the decision by the Oyo State Health Insurance Agency (OYSHIA) to raise health insurance deductions for local government workers to 7.5 per cent of their basic salary.
Led by its state president, Comrade Ayobami Adeogun, the union described the new deduction as insensitive and poorly timed, coming amid widespread economic hardship facing workers. NULGE’s reaction followed a statement by the Executive Secretary of OYSHIA, Dr Sola Akande, who announced that health insurance deductions for civil and public servants had been increased to 7.5 per cent with effect from January, attributing the adjustment to rising healthcare costs and other factors.
While reacting to the development, NULGE commended Governor Seyi Makinde for what it described as his consistent pro-worker policies, including improved welfare initiatives and regular engagement with labour unions. However, the union stressed that the new health insurance deduction does not align with the governor’s people-oriented leadership style and inclusive approach to governance.
The union faulted the process leading to the increase, noting that the decision was taken without adequate consultation with its State Administrative Council and State Executive Council. It warned that the higher deduction would further reduce workers’ take-home pay at a time when inflation, food prices, transportation and housing costs continue to soar.
NULGE also criticised OYSHIA for failing to adequately address longstanding complaints by workers, including poor service delivery, limited availability of drugs and delays in accessing quality healthcare. It noted that these challengesnges persist despite workers previously contributing fixed premiums of ₦666.70 and ₦1,250 under the scheme.
According to Comrade Adeogun, the sustainability of healthcare financing should not be pursued at the expense of workers’ survival. He reaffirmed the union’s support for health insurance schemes but maintained that any policy that worsens the economic condition of workers remains unacceptable.
The union concluded by calling for the retention of the existing premium structure in line with Governor Makinde’s consultative and people-centred governance philosophy, insisting that healthcare reforms must be fair, inclusive and driven by dialogue rather than imposed on an already overstretched workforce.
