Oyo State Governor Seyi Makinde has approved another three-month extension of the wage award for state workers and said the government will continue its transport subsidy programme. The announcement was made on Friday, September 18, 2026, after Makinde resumed duties following his annual leave.

The measures are intended to provide additional relief to workers and residents as higher fuel and transportation costs continue to put pressure on household finances.

Makinde announced the extension while receiving a welcome from government officials, labour leaders and civil servants at the Oyo State Governor’s Office in Agodi, Ibadan.

According to the governor, the wage award will continue for another three months. He also said the transport subsidy introduced by his administration would remain in place.

The measures are part of the state government’s response to the economic pressures facing workers and residents, particularly the effect of rising petrol prices on transportation and household expenses.

Makinde returned to office after his annual leave, during which Deputy Governor Bayo Lawal served as Acting Governor.

The governor also called for discussions between labour leaders and the state government over the economic difficulties affecting workers.

Oyo's wage bill has increased substantially

Makinde said the state’s monthly wage bill had increased from about ₦4.5 billion in 2019 to ₦18 billion, while the minimum wage had risen from ₦18,000 to ₦80,000.

The current ₦18 billion monthly salary figure has also been publicly cited by Oyo State Commissioner for Information Dotun Oyelade. In April 2026, BusinessDay reported the government as saying that the state was spending more than ₦18 billion each month on workers' salaries.

The figures highlight the larger financial commitment involved in maintaining workers' earnings as statutory wage levels have increased.
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For Oyo workers receiving the wage award, the three-month extension provides additional income beyond their regular salaries during a period of elevated living and transportation costs.

The continuation of the transport subsidy is also relevant to workers who depend on public transportation. Any reduction in transport expenses can help offset part of the financial pressure created by higher fuel prices.

For the state government, however, maintaining additional worker support alongside the regular salary bill represents an ongoing fiscal commitment. The latest announcement therefore affects both household finances and the state's expenditure obligations.

The practical impact will depend on the value of the wage award, how the transport subsidy is administered and how long the measures remain in place.

Key Questions

What exactly has been extended?

The wage award has been renewed for three months. Makinde also announced that the transport subsidy will continue.

Who is affected?

The wage award directly concerns Oyo State civil servants covered by the programme. The transport subsidy is intended to support eligible commuters and residents who benefit from the state's subsidised transportation arrangements.

Why is the government continuing the measures?

Makinde linked the decision to the economic difficulties facing workers and residents, including pressure arising from increased fuel and transportation costs.

Is this a new wage increase?

No. The announcement concerns the renewal of an existing wage award, not a new increase in the state's basic salary structure.

How much is Oyo spending on salaries?

The Oyo government has said its monthly salary bill is now above ₦18 billion. That figure was independently reported in April 2026 based on comments from the state's Commissioner for Information.

What happens after the three months?

The latest announcement confirms another three-month period but does not establish that the wage award will automatically continue beyond that period. Any further extension would require another government decision.

Makinde's return to office also comes amid political debate over a €55 million French concessional loan secured by Oyo State for healthcare development.

The loan has been described in reporting as being intended to strengthen and modernise healthcare facilities across the state. A March 2026 record says the facility is intended for upgrades to secondary healthcare facilities in Oyo's five zones.

The issue became politically contentious this week after APC governorship candidate Sharafadeen Alli's campaign organisation accused the Makinde administration of potentially diverting the facility for politically motivated projects ahead of the 2027 elections. Those allegations were made by Alli's campaign organisation and should not be treated as established facts.
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Makinde rejected the allegation in his September 18 remarks, saying the loan was strictly for healthcare improvements. He said the process began years earlier and that the French government had offered the facility for Oyo's healthcare development.

The competing claims leave questions about the precise implementation timetable, disbursement and projects to be funded by the facility. These are matters that can be assessed through official loan documents, procurement records and project implementation information.

During his return to office, Makinde discussed his political ambition and criticised President Bola Tinubu over the handling of presidential powers when the President is away.

Those comments are political statements by the Oyo governor and are separate from the wage-award decision.

Makinde also told workers that the 2027 election would eventually determine the direction of governance in Oyo State. His remarks came as political activity ahead of the 2027 elections continues.

The immediate confirmed development is that the wage award will run for another three months, while the transport subsidy will continue.

The state government is also expected to engage labour representatives over workers' welfare and the wider economic pressures affecting residents.

Separately, the implementation of the French healthcare loan will remain an issue of public interest, particularly regarding the projects selected, funding arrangements, procurement and eventual delivery of healthcare infrastructure.

Makinde's latest decision provides Oyo workers with another three months of wage-award support while maintaining the state's transport subsidy. The measures offer short-term relief, but the longer-term question is how the state will balance continued support for households with its growing personnel and other spending commitments.

For residents, the next important developments will be the implementation of the renewed wage award, the continuation of transport assistance and further details on how major state-funded projects, including the French-backed healthcare programme, are carried out.