A major crisis is brewing at the Federal Medical Centre (FMC), Abeokuta, following a bitter face-off between the Board Chairman, Dr. Dayo Isreal, and the hospital’s management over allegations of financial mismanagement, abuse of power and alleged interference in day-to-day administration.
Dr. Isreal, the current All Progressives Congress (APC) National Youth Leader, was appointed Chairman of the Board of FMC Abeokuta in January 2025 as part of President Bola Ahmed Tinubu’s vision to reposition the health institution into a world-class medical facility, with improved infrastructure, efficiency and staff productivity.
One year after his appointment, concerns, petitions and counter-allegations have thrown the centre into controversy. In this report, Hakeem Adegbenro examines the developments surrounding the leadership of the foremost youth mobiliser, against the backdrop of established procedures guiding federal medical institutions.
Dr. Isreal’s appointment was initially greeted with optimism. Prominent leaders, including Lagos State Governor, Babajide Sanwo-Olu, hailed the decision as a move towards youthful, energetic and innovative leadership in the health sector. Upon assumption of office, Isreal embarked on wide consultations, including courtesy visits to former President Olusegun Obasanjo, the Alake and Paramount Ruler of Egbaland, Oba Adedotun Aremu Gbadebo, leaders of the Nigeria Medical Association (NMA), and other key stakeholders.
He publicly pledged to transform FMC Abeokuta into a “world-class” health institution capable of attracting international patients. He also announced plans to transition the hospital from reliance on the national grid to renewable energy sources to guarantee uninterrupted power supply.
“I want to support the management of FMC Abeokuta to make it a world-class institution. We must become a model healthcare facility others will come to learn from. We will match our words with action,” Isreal declared shortly after his appointment.
Allegations, Petitions and Internal Tension
However, a few months into his tenure, allegations began to surface. Central among them was the reported expenditure of about ₦25.5 million within a two-week period during a familiarisation tour by the Board Chairman.
In a letter dated March 11, 2025, addressed to the Coordinating Minister of Health, Prof. Muhammad Ali Pate, and signed by the then Medical Director, Prof. Musa Olomu, the hospital management raised concerns over what it described as financial recklessness and interference by the Board Chairman.
The letter alleged that Dr. Isreal delved into the daily operations of the hospital, demanded departmental presentations, and acted outside the provisions of administrative guidelines governing the relationship between boards and management of federal institutions. It further claimed that no formal letter from the Presidency or Ministry was presented to officially introduce him as Board Chairman.
Management also alleged that his request for official SUVs valued at over ₦300 million was rejected due to lack of budgetary provision, and that the hospital incurred over ₦25 million on hotel accommodation and logistics for Isreal and his aides, allegedly disrupting service delivery and payments to vendors.
More concerns were raised over claims that the Board Chairman sought to influence the process for appointing a substantive Medical Director after the exit of Prof. Olomu on May 31, 2025, a move management warned could plunge the hospital into deeper financial crisis.
The letter further alleged that on June 1, 2025, the Acting Medical Director’s authority was undermined, with staff relieved of their duties and non-government personnel introduced into the management of FMCA Consult Limited, a subsidiary of the hospital.
In another twist, a group identifying itself as Concerned Staff of FMC Abeokuta petitioned the Independent Corrupt Practices Commission (ICPC) in October 2025, accusing Dr. Isreal of abuse of office and mismanagement. The petition alleged that he unilaterally restructured FMCA Consult Limited, made himself a majority shareholder, appointed political associates as managers, and sidelined civil servants in violation of financial regulations and ethical standards.
The group also alleged manipulation of the 2025 staff promotion exercise, claiming it generated widespread dissatisfaction among staff.
Insider Alarm
An insider at the medical centre, who spoke on condition of anonymity, described the situation as alarming, alleging that the Board Chairman had “hijacked” the hospital’s operations.
According to the source, the chairman’s alleged assumption of executive powers, involvement in the consult company, and operation of commercial accounts contrary to the Treasury Single Account (TSA) policy amounted to grave infractions.
The source also raised concerns over the absence of a fully constituted and inaugurated board, describing the situation as a “one-man board” arrangement that violates established governance structures.
‘Change Is Inevitable’ — Isreal Fires Back
Reacting to the allegations, Dr. Dayo Isreal dismissed them as baseless, insisting they were orchestrated by individuals resistant to reform and accountability.
He maintained that he could not have mismanaged funds since he is not a signatory to any account of FMC Abeokuta or FMCA Consult Limited.
“How do you mismanage what you do not control? These are desperate individuals clinging to straws because we blocked the loopholes they used to exploit the system,” he said.
Isreal stated that the board’s role is to provide fiscal direction and oversight in line with President Tinubu’s Renewed Hope Agenda, adding that reforms would continue regardless of opposition.
He listed achievements under his tenure, including improved financial accountability, restructuring of FMCA Consult to align with the Companies and Allied Matters Act (CAMA), introduction of monthly financial reporting, and prioritisation of staff training and strategic planning in the 2026 budget.
He also alleged that the level of corruption inherited at FMC Abeokuta was “mind-blowing,” claiming that several security agencies were investigating the immediate past Medical Director.
“It is false to say I am running a one-man show. Board meetings are held, minutes are documented, and statutory members are fully involved. FMC Abeokuta is too important to Ogun State and Nigeria to be left unaccountable,” he said.
As investigations and petitions continue, stakeholders and staff watch anxiously, amid fears that the crisis, if not urgently addressed, could further disrupt services at Ogun State’s only federal tertiary health institution.
