Nigerian Medical Association Demands Owoeye’s Removal Over Shocking Corruption Allegations at Lagos Psychiatric Hospital

The Nigerian Medical Association (NMA) has sounded the alarm over what it calls a looming administrative collapse at the Federal Neuro-Psychiatric Hospital, Yaba, Lagos, following the contentious reappointment of Dr. Olugbenga Owoeye as Acting Medical Director despite his tenure having expired.

In a statement released Monday, Dr. Babajide Saheed, Lagos State Chairman of the NMA, condemned the decision to retain Dr. Owoeye, urging the Federal Ministry of Health and the Minister of State for Health, Dr. Tunji Alausa, to uphold the Public Service Rules and ensure merit-based appointments within Nigeria’s healthcare system.

“We strongly disapprove of the decision to keep Dr. Olugbenga Owoeye—whose tenure as Medical Director has expired—as Acting Medical Director. Such a reappointment must be earned on merit,” Saheed said.

He further called on the Ministry to avoid crisis-prone decisions that contradict the Public Service Rules, emphasizing the NMA’s commitment to engaging relevant authorities to enforce proper procedures.

“NMA demands the immediate reversal of Dr. Owoeye’s appointment and calls for the next most senior and qualified officer to serve as Acting Medical Director until a substantive appointment is made through a transparent, merit-based process, in line with Public Service Rules and established circulars (SGF.50/S.II/C.2/268),” he added.

Saheed also urged continued dialogue with the NMA and the Medical and Dental Consultants Association of Nigeria (MDCAN) to prevent escalation into a full-blown crisis.

“The leadership of healthcare institutions must reflect merit, accountability, and dedication to public service. The health of Nigerians is a sacred responsibility that must not be compromised,” Saheed stressed.

The NMA’s call comes amid troubling allegations of financial mismanagement at the hospital. Reports by SaharaReporters reveal that Dr. Owoeye admitted to diverting funds intended for patient meals and medications to cover electricity and diesel expenses, a decision he attributed to severe underfunding by the federal government.

He explained that internally generated revenues from drugs and patient food services were used to pay utility bills to keep the hospital operational amidst soaring energy costs.

However, insiders dispute this justification, accusing Dr. Owoeye of overseeing years of infrastructure decay, unpaid suppliers, and declining patient care standards. Official documents reportedly show the Federal Ministry of Finance released over N686 million to the hospital between the third quarter of 2024 and the first quarter of 2025, contradicting claims of zero funding.

“There is little to show for these funds. The outpatient clinic was demolished and never rebuilt. Patients now consult doctors in open dining halls. The feeding system is in ruins, and drugs are scarce,” a hospital source revealed.

Further controversy surrounds Dr. Owoeye’s ownership of a private hospital near the government facility, from which he reportedly earns monthly income, raising concerns over conflict of interest.

When reached for comment, Dr. Owoeye denied any wrongdoing, insisting his actions were necessary to keep the hospital running amid inadequate government support.

“I am not diverting funds. I am merely redirecting internally generated revenue to settle debts. No one is willing to assist. Even the Federal Ministry of Health struggles with electricity disconnection,” he said.

Dismissing the allegations as attempts by “miscreants with selfish interests” to tarnish his reputation, Dr. Owoeye challenged critics to visit the hospital and verify his claims firsthand.