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Oyo wage bill surges to 18 billion naira as governor tackles strike

Oyo State's monthly wage bill has jumped sevenfold since 2019, prompting the governor to pledge resolution of workers' arrears at the state teaching hospital.

Oyo State Governor Seyi Makinde has committed to resolving outstanding demands from striking workers at Ladoke Akintola University of Technology Teaching Hospital following a meeting with stakeholders on Thursday. The governor said the state's wage bill has climbed sharply from 4.5 billion naira in 2019 to 18 billion naira in 2026, straining finances despite assumptions about increased federal allocations. He pledged to address salary arrears, minimum wage arrears, promotion arrears and the Medical Residency Training Bill promptly.

Makinde attributed the financial pressures to rising costs of major infrastructure projects. He cited the Iseyin-Fapote-Ogbomoso Road, which cost 43 billion naira in 2023 but would now require at least 200 billion naira due to inflation and broader economic challenges. The governor said salary arrears of 162 million naira owed to workers would be paid, with the October salary bill already prepared and signed and arrears targeted for payment by mid-November.

Addressing concerns from the Joint Health Sector Unions, Makinde said minimum wage and promotion arrears for October, November and December 2024, totalling 38 million naira, would be cleared. He also approved an increase in monthly salaries for cleaners at the teaching hospital from 15,000 naira to 80,000 naira, aligning their pay with the national minimum wage. The governor said the Medical Residency Training Bill would be signed once clean copies were received, with the first week of November targeted for completion.