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Oyo Govt Moves Against Gratuity Fraud, Warns Pensioners Against Extortion

by NationalInsight
January 17, 2026
in Featured, News
Reading Time: 2min read
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Nigerians and 2027 election

Oyo state Governor, Engineer Seyi Makinde

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The Oyo State Government has vowed to clamp down on individuals involved in the extortion of pensioners under the guise of facilitating gratuity payments.

This followed allegations that some retirees in the state are being forced to part with between five and 10 per cent of their gratuities by unscrupulous elements claiming to be government officials.

In a statement issued on Thursday by the Commissioner for Information, Prince Dotun Oyelade, the government said it has intensified due diligence in the payment of gratuities, stressing that the current administration has significantly improved the welfare of retirees compared to previous administrations.

Prince Oyelade disclosed that with the current monthly allocation for gratuity payments, over 800 retirees now benefit every month, a sharp increase from about 250 beneficiaries recorded in previous years.

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He revealed that a cartel operating within the civil service has been identified and that the government is closing in on those responsible for the fraudulent practices.

According to him, the illegal practice, which has persisted for years, involves demanding illegal payments from retired civil and public servants to fast-track their gratuity processing.

“This malpractice is unfortunately longstanding. The issue has persisted over the years, even during the tenure of former Governor, His Excellency Lam Adesina, and continues to affect unsuspecting pensioners till today,” Oyelade said.

He added that despite repeated warnings from the government, some pensioners still fall victim to the schemes, noting that the extortion is not limited to state pensioners alone but also affects retired local government staff.

Highlighting efforts by the present administration, the commissioner recalled that gratuities were not paid between 2011 and 2016 until the arrears were cleared by Governor Seyi Makinde.

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He further stated that Governor Makinde has increased monthly gratuity releases by 200 per cent, raising allocations from ₦1 billion to ₦3 billion monthly.

“With this development, there is absolutely no need for any backdoor payment in the processing of gratuities or entitlements,” Oyelade said.

He urged retirees to strictly follow the established monthly disbursement procedures and to promptly report any suspicious activities or demands for illegal payments to the appropriate authorities.

The government, he assured, remains committed to sanitising the system and ensuring that retirees receive their benefits without exploitation.

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