Lagos Targets N400bn Annual Healthcare Financing Through Insurance
The Lagos State Commissioner for Health, Prof. Akin Abayomi, says the state can inject over ₦400 billion annually into the healthcare financing system if 20 million residents enrol in the state’s health insurance scheme.
Abayomi said this during the inauguration of the Lagos Private Health Partnership (LPHP), a reform initiative designed to restructure health financing, expand insurance coverage, and ensure equitable access to quality healthcare for residents.
This , he said, the initiative aimed to achieve through a unified, transparent, public–private collaboration framework.
The commissioner explained that the projected ₦400 billion annually into the healthcare financing system could be achieved with an average premium of ₦20,000 yearly.
He emphasised that without widespread enrolment, Lagos would not actualise a functional insurance ecosystem capable of delivering equitable, people-centred care.
Abayomi lamented that in spite Lagos’ economic prowess and booming population exceeding 25 million, the state continued to suffer from inadequate health financing, low insurance penetration, workforce attrition, and increasing medical tourism.
Abayomi emphasised that the LPHP was purposely engineered to restore fairness, transparency, quality, and sustainability through a collaborative procurement platform.
He noted that it was a decisive break from a decade-long fragmented and inefficient private health insurance marketplace characterised by unhealthy price undercutting, unpopular enrollee access restrictions, and loss of trust among stakeholders.
The state health insurance is implemented through the Lagos State Health Scheme (LSHS), popularly known as ‘Ìlera Èkó’, which is compulsory for all residents, employers, and workers.
The policy is based on an Executive Order signed by Gov. Babajide Sanwo-Olu in July 2024, requiring enrollment in either the state-run or an accredited private health insurance provider to access non-emergency public healthcare services.
Abayomi reiterated that full enforcement of mandatory health insurance would begin after a six-month sensitisation window.
This, according to him, is in alignment with the governor’s directive to scale risk-pooling, cross-subsidisation, and financial protection.
He explained the LPHP to be the government’s strategic tool for reversing the trend, improving health outcome indicators, and recalibrating patient confidence in domestic healthcare capacity.
“LPHP is underpinned by a robust digital marketplace where enrollment, provider selection, fund flow, claims management, monitoring, reporting, and evaluation will occur seamlessly with compliance footprints.
“Through the system, competition will shift from price-driven rivalry to value-driven outcomes, standardised plans, and quality assurance enforced by HEFAMAA.”
Abayomi explained that LPHP would introduce a state-managed risk equalisation and solidarity fund, requiring private insurers to contribute 13 per cent of premiums to protect vulnerable populations, strengthen emergency response, and sustain universal health coverage commitments.
Similarly, Gov. Sanwo-Olu described LPHP as a historic step towards building a resilient and future-driven health financing architecture capable of protecting households from catastrophic expenditure.
Sanwo-Olu, represented by Mrs Abimbola Salu-Hundeyin, Secretary to the State Government, emphasised that the initiative demonstrated Lagos’ seriousness in translating compulsory health insurance mandates into effective, scalable, and economically viable implementation.
According to him, LPHP emerged directly from Lagos’ domestication of the National Health Insurance Authority (NHIA) Act of 2022 through an Executive Order signed in July 2024.
He noted that the reform would strengthen private health service delivery which is responsible for over 70 per cent of healthcare delivery in Lagos.
The Governor stressed that LPHP would also enable insurers and providers to operate within a clearly defined framework that balances profitability, service standards, and equity.
He disclosed that the state had adopted a population-based enrolment model for employees of private organisations to streamline risk distribution and subsidised plan access.
Also, Dr Adebayo Adedewe, Chairman, Lagos State Health Management Agency (LASHMA), described LPHP as a credible solution to long-standing challenges in the health insurance space.
Commenting, Dr Jimi Arigbabuwo, National Adviser on Health Insurance Matters for the Healthcare Providers Association of Nigeria (HCPAN), said LPHP signifies a turning point in the recognition and integration of private sector providers to Nigeria’s healthcare services.
Arigbabuwo urged government to prioritise fair compensation for providers to guarantee sustainability, patient satisfaction, and reduction in outbound medical tourism.#Lagos Targets N400bn Annual Healthcare Financing Through Insurance#
