(DDM) – The Oyo State government has issued a stern warning to pensioners over the activities of a criminal cartel allegedly extorting between five and ten percent of retirees’ gratuity payments.
DDM gathered that the alert was released after reports emerged of organized networks approaching pensioners under the guise of facilitating payments and administrative processing, demanding illegal fees in exchange for accessing their rightful entitlements.
Officials disclosed that the fraudulent operators exploit retirees’ limited understanding of administrative procedures and leverage intimidation to force compliance, causing financial losses and distress among vulnerable pensioners.
The state’s Pension Bureau clarified that gratuity and pension payments are guaranteed under law and should reach beneficiaries without deductions beyond official statutory obligations.
Authorities said the government has launched an urgent investigation to identify perpetrators, dismantle the extortion network, and prosecute those involved under existing criminal and anti-corruption statutes.
The Oyo State Commissioner for Finance explained that government channels, including designated bank accounts and official communication lines, remain the only legitimate avenues for pension disbursement.
Officials urged pensioners to verify information through official sources, refrain from dealing with intermediaries, and report any suspicious activity to local authorities or the pension office.
Background research shows that pension-related fraud has been a recurring issue in several Nigerian states, often targeting elderly citizens who depend solely on government remittances for survival.
Experts warn that cartels thrive on secrecy and fear, highlighting the need for continuous public awareness campaigns and tighter administrative controls to prevent exploitation.
Oyo State has reportedly strengthened its verification and monitoring systems to ensure that gratuity payments are released directly to authorized bank accounts, minimizing opportunities for fraudulent interference.
Civil society groups welcomed the government’s intervention, emphasizing that retirees must be empowered with information and legal recourse to protect themselves from financial abuse.
Observers note that organized pension fraud not only undermines retirees’ welfare but also erodes trust in state institutions and discourages compliance with legitimate administrative procedures.
The government plans to introduce periodic workshops and hotlines specifically targeting pensioners, educating them on safe practices and steps to report extortion attempts promptly.
Authorities also committed to a zero-tolerance policy, assuring the public that all confirmed cases will result in prosecution to the fullest extent of the law.
Oyo State pensioners were reminded that gratuity payments are a statutory right, and that no individual or group has the authority to demand additional fees outside official channels.
Officials concluded by reiterating that collaboration between pensioners, family members, community leaders, and government agencies is critical to eliminating cartels and ensuring retirees receive their entitlements securely.