Oyo State Declares War On Gratuity Cartels To Protect 800 Monthly Retirees

The Oyo State government has launched a major crackdown on a fraudulent “pension cartel” operating within the civil service that extorts retired public servants. Information Commissioner Dotun Oyelade revealed on Friday, January 16, 2026, that unscrupulous elements have been demanding between 5% and 10% of retirees’ gratuities under the false promise of fast-tracking their payments.

The government warns that these criminals, who claim to be officials, are exploiting a longstanding malpractice to siphon funds from unsuspecting senior citizens.

In a move to eliminate the “back-door” culture, Governor Seyi Makinde has authorized a 200 percent increase in the monthly gratuity allocation, raising the pool from ₦1 billion to ₦3 billion.

This fiscal expansion allows the state to pay over 800 retirees every month, a significant jump from the 250 beneficiaries handled by previous administrations. Commissioner Oyelade emphasized that with this structured and increased disbursement, there is no technical or legal reason for any retiree to pay a middleman to receive their entitlements.

The state has narrowed its investigation to identify internal accomplices within the civil service who facilitate these illegal transactions. This crackdown follows the clearance of years of arrears dating back to 2011, which the current administration argues has removed the desperation that cartels previously weaponized.

Retirees at both state and local government levels are urged to strictly follow the official monthly disbursement list and immediately report any solicitor asking for a percentage to the Ministry of Information or law enforcement.