The Ogun State Government has awarded a N10.964 billion contract for the procurement of vehicles for top government functionaries, ministries, departments, and agencies. According to the procurement record, the contract was awarded by the Office of the Secretary to the State Government to MUJAF Automobile Nigeria Limited in February 2026. The contract was awarded through a sole-bid process with a contract period of just three weeks.
The vehicle expenditure comes against the backdrop of continuing protests and industrial action by resident doctors, nurses, and other healthcare workers over poor welfare and working conditions in Ogun State. In June 2026, resident doctors at the Olabisi Onabanjo University Teaching Hospital embarked on a 10-day warning strike over non-payment of revised professional and specialist allowances, outstanding arrears, and delayed training funds.
The doctors also complained about inadequate staffing, poor accommodation, and security breaches within the hospital environment. Following discussions with the state government, the doctors later suspended the warning strike after receiving assurances that their professional allowances would be paid. The N10.964 billion vehicle contract raises questions about Ogun's spending priorities.
In August 2026, the Ogun State government reportedly spent N1.06 billion on special days and celebrations during the first six months of the year. The state government also spent N9.9 billion on welfare packages and N1.2 billion on honoraria and sitting allowances for political office holders, legislative members, and other state officials.
Governor Dapo Abiodun presented a N1.669 trillion 2026 budget to the Ogun State House of Assembly in December 2025. The budget allocated N210.59 billion, representing 13 percent, to the health sector, while N1.044 trillion was earmarked for capital expenditure. The vehicle contract represents about 5.1 percent of the entire N210.59 billion health-sector allocation contained in the 2026 budget.
According to the Ogun State Government's Second Quarter 2026 Budget Implementation Report, the state budgeted N47.208 billion for its Hope-Healthcare projects but released and utilised only N1.009 billion, representing 2.14 percent, as of the end of June 2026. The state government described the performance as “not impressive”, attributing the low implementation to non-accessibility of funds earmarked for the projects.
The low spending was especially pronounced in several areas directly connected to healthcare infrastructure and equipment. The government allocated N6.698 billion to revitalise and upgrade 80 primary healthcare centres but recorded zero expenditure on the project as of June 30. Similarly, no expenditure had been recorded on the N4.3 billion allocated for drilling boreholes equipped with solar power and inverters for 80 primary healthcare centres.
Key points
- Ogun State government awards N10.964 billion contract for vehicles for top officials amid protests by health workers over unpaid allowances and poor working conditions.
- The vehicle contract represents about 5.1 percent of the entire N210.59 billion health-sector allocation contained in the 2026 budget.
- The state government's low spending on healthcare infrastructure and equipment has been criticised, with several projects recording zero expenditure as of June 30.
