What was conceived as a landmark milestone for healthcare in Ondo State, the formal federal takeover of the former University of Medical Sciences Teaching Hospital (UNIMEDTH) to establish the Federal University of Technology Akure Teaching Hospital (FUTATH), has degenerated into a fierce battle marked by fraud allegations, union protests, and claims of widespread job racketeering.
At the center of the dispute is the Integrated Payroll and Personnel Information System (IPPIS) enrolment exercise. Organized labour unions in Ondo State allege that authentic employment lists were hoarded and select slots were sold for between ₦600,000 and ₦800,000 to non-staff job seekers.
Conversely, the hospital’s management, led by Chief Medical Director (CMD) Prof. Olusegun Ojo, claims to have uncovered an organized criminal syndicate selling fraudulent appointment letters. Meanwhile, the Ondo State Government and the Federal Ministry of Health are scrambling to preserve industrial peace.
The legal framework for the federal takeover was established when the Ondo State Government signed a Memorandum of Understanding (MoU) with the Federal Ministry of Health and Social Welfare. Under the agreement, state facilities and staff were to be integrated into the federal civil service to facilitate the smooth take-off of FUTATH.
Between December 8 and 12, 2025, a 10-member interministerial committee, comprising representatives from the Federal Ministry of Health, Ministry of Finance, Office of the Head of the Civil Service of the Federation (OHCSF), and the Office of the Accountant-General of the Federation, conducted a verification exercise to evaluate qualifications and absorb eligible staff into the federal system.
Following the screening, the Federal Government approved a take-off establishment of 1,200 personnel for the institution.
The crisis erupted during the IPPIS biometric capturing exercise. Labor unions in Ondo State raised alarms, alleging that over 1,000 verified state workers were expecting automatic integration, but management disclosed approvals for only around 700 to 800 workers.
Unions claim the remaining undisclosed slots were withheld and monetized, offering them to outside buyers for sums ranging from ₦600,000 to ₦800,000. Labour leaders argue that hundreds of names on the original list sent to Abuja were hijacked, reshuffled, and replaced. Union representatives contend that their claims were vindicated by the CMD’s recent disclosure that out of the 1,200 approved establishment slots, only over 800 workers were captured during the initial June exercise in Akure, with additional staff attending a mop-up exercise in Abuja on July 9, 2026.
Labour representatives further allege that CMD Prof. Olusegun Ojo and key aides orchestrated selective IPPIS capturing, even asserting that unauthorized biometric enrolments occurred at private locations, including a high-brow residential estate in Akure. The unions insist they have documented evidence showing that non-staff members who paid for slots were surreptitiously smuggled onto the federal nominal roll at the expense of veteran state healthcare workers who were left off the capturing list.
The hospital management forcefully rejected claims of selective capturing or slot sales by leadership. Speaking through the Head of Public Relations, Mr. Tope Fayehun, management labeled the accusations as malicious falsehoods aimed at smearing the CMD’s reputation. Fayehun countered that preliminary internal investigations revealed an external criminal network, involving individuals posing as hospital officials, selling fraudulent appointment letters bearing the name of the defunct UNIMEDTH or the new federal entity for ₦200,000 to ₦600,000.
Fayehun stated that the management of FUTA Teaching Hospital has neither authorized, instructed, nor participated in any selective biometric capturing activity. He emphasized that all biometric capturing under the Federal IPPIS system is conducted strictly in accordance with federal guidelines under the direct supervision of visiting federal officials from Abuja. He added that management will prosecute any staff or outsider found involved in the alleged racketeering scheme.
Addressing the numbers, Prof. Olusegun Ojo explained that out of the 1,200 approved establishment slots, over 800 workers were captured during the initial June exercise in Akure, while additional staff completed the mop-up exercise in Abuja on July 9, 2026. He noted that the hospital aims to place all verified staff on the federal payroll by the end of August 2026.
Providing clarity on behalf of the Ondo State Government, Prof. Simidele Odimayo, Special Adviser on Health to Governor Lucky Aiyedatiwa and state representative on the Transition Working Committee, addressed worker anxieties. Prof. Odimayo confirmed that noticeable irregularities had occurred and acknowledged that the original MoU signed during the handover had been compromised, primarily by the current teaching hospital management.
He reiterated that the state government is actively collating the names of omitted personnel to present to the federal government team.
Despite these breaches, Prof. Odimayo urged calm among affected staff, reassuring them that the state government remains committed to the three cardinal principles of the MoU: maintaining uninterrupted healthcare delivery, providing a robust teaching platform for FUTA’s medical students, and guaranteeing that no legitimate worker loses their job. He promised that all outstanding issues would be resolved and that equity and fairness would ultimately prevail.
To prevent an industrial strike from disrupting tertiary healthcare delivery in Ondo State, the Federal Ministry of Health has stepped in to resolve the dispute. The ministry convened reconciliation discussions involving the hospital management, representatives of the Ondo State Government, and organized labor unions. The intervention aims to review omitted staff claims, audit the nominal roll against the original screening recommendations, and establish industrial peace at the teaching hospital.
As the August payroll deadline approaches, healthcare workers in Akure remain watchful, hoping the federal audit will expose any fraudulent slots and ensure that legitimate state health workers are integrated into the new federal teaching hospital.
