Makinde Pledges to Clear LAUTECH Hospital Arrears as Oyo Wage Bill Hits ₦18bn

Oyo State Governor Seyi Makinde has pledged to address outstanding salary and promotion arrears affecting workers at Ladoke Akintola University of Technology (LAUTECH) Teaching Hospital, Ogbomoso, as he appealed to striking employees to suspend their industrial action. Makinde gave the assurance during a meeting with stakeholders at the teaching hospital on Thursday, according to a report published by PUNCH on Friday, October 16. The governor attributed the state’s financial pressures to rising wage obligations, inflation and the increasing cost of infrastructure projects, noting that Oyo State’s monthly wage bill had risen from ₦4.5bn in 2019 to ₦18bn in 2026. Speaking through a statement issued by his Special Adviser on Media, Sulaimon Olarenwaju, Makinde said the government would work towards resolving the workers’ outstanding demands, including salary arrears, minimum wage arrears, promotion arrears and issues relating to the Medical Residency Training Bill. He appealed to the workers to consider the state’s financial circumstances and return to work to allow discussions on their grievances to progress. “Despite public assumptions about increased Federal allocations, Oyo’s wage bill has risen sharply from ₦4.5 billion in 2019 to ₦18 billion in 2026,” the governor said. ### Makinde Gives Timeline for Salary Arrears The governor disclosed that ₦162m in salary arrears owed to workers would be paid, adding that the October salary bill had already been prepared and signed. He said the outstanding payments were expected to be made by the middle of November. Makinde also addressed concerns surrounding the Medical Residency Training Bill, stating that he would sign it once he received the clean copies of the document. According to the governor, the administration was targeting the first week of November for the signing. The development comes amid continuing concerns about staff welfare and unpaid entitlements at the teaching hospital, where healthcare workers have repeatedly called for improvements in their working conditions and remuneration. ### ₦38m Arrears for Health Workers Makinde also addressed demands raised by the Joint Health Sector Unions (JOHESU), disclosing that ₦38m in minimum wage and promotion arrears covering October, November and December 2024 would be cleared. He said he would seek to make ₦200m available to settle the outstanding obligations after salaries were paid, with the aim of completing the payments before the middle of November. The governor also approved an increase in the monthly salaries of cleaners at the teaching hospital from ₦15,000 to ₦80,000. The decision followed an appeal by the cleaners during his visit and was intended to bring their remuneration in line with the national minimum wage. The announcement attracted applause from those present at the meeting. ### Rising Infrastructure Costs Add to Financial Pressure Explaining the state’s financial challenges, Makinde cited the rising cost of major road projects as an example of the economic pressures facing his administration. He said the 76-kilometre Iseyin–Fapote–Ogbomoso Road, which cost ₦43bn in 2023, would now require at least ₦200bn to execute. The governor also recalled that when he assumed office in 2019, the state received approximately ₦6bn to ₦7bn through the Federation Account Allocation Committee (FAAC), while the monthly salary bill stood at ₦4.5bn. He argued that the increase in recurrent expenditure and infrastructure costs had placed additional pressure on available government revenue. Makinde, who said he had about seven months left in office, added that he wanted to resolve as many outstanding issues as possible before the next administration took over. ### Hospital Management, Union Representatives Respond At the meeting, Oyo State Commissioner for Health, Dr Oluwaserimi Ajetunmobi, thanked the governor for his support for the health sector and said the administration remained committed to addressing recurring industrial disputes. The Chief Medical Director of LAUTECH Teaching Hospital, Professor Olawale Olakulehin, and the hospital’s board chairman, Professor Banji Oyelaran-Oyeyinka, also urged staff and union leaders to cooperate with the government. Representatives of resident doctors and JOHESU, including Dr Mustapha Adedapo, Dr John Oladapo and Comrade Olobaniyi David, acknowledged the governor’s interventions, ongoing renovations at the hospital’s annex in Oyo and payments made towards some outstanding arrears. However, they called for sustained implementation of professional allowance tables for resident doctors and allied health workers. Their appeal highlights the broader staff welfare concerns that have contributed to tensions at the institution. Makinde urged the workers to suspend their strike, maintaining that dialogue was necessary to resolve the outstanding issues. While the governor outlined payment commitments and proposed timelines, the full implementation of those assurances will be central to determining whether the dispute can be resolved and industrial harmony restored at the teaching hospital.