This study ascertained the principals’ provision of incentive for secondary schools' improvement in Oyo State. Two research questions guided the study and two null hypotheses were tested. The descriptive survey research design was adopted for the study. The population of the study was 8,701 which comprised 969 principals and 7,732 teachers in public secondary school principals in Oyo State. Proportionate Stratified sampling technique was used to draw 871 respondents made up of 97 principals and 774 teachers. Two versions of a 19 item researchers' developed instrument titled ‘‘Principals’ Incentive Practices for Schools' Improvement Questionnaire (PIPSIQI)’’ and ‘‘Principals’ Incentives Practices for Schools Improvement Questionnaire
(PIPSIQII)’’ were used for data collection. Mean rates and standard deviation were used to answer the research questions, while t-test was used to test the null hypotheses at 0.05 level of significance. The findings of the study revealed among others that principals and teachers agreed that involving staff in decision making process to enhance their commitment in implementing the instructional programme, prompt attention to teachers on-the-job problems, praising teachers for excellent performance, assigning responsibility with commensurate authority to give teachers opportunity to demonstrate their skills and maintaining mutual relationship among others are teachers' incentive practices provided by secondary school principals in Oyo State. Based on the findings, it was recommended among others that there is need for State Ministry of Education to regularly organize interactive workshops that include
both principals and teachers for working out modalities for improvement on provision of incentives for teachers. Conclusions were drawn and other recommendations were made.