The Lagos State Commissioner for Health, Prof. Akin Abayomi, says the state can inject over ₦400 billion annually into its healthcare financing system if 20 million residents enroll in the Lagos State health insurance scheme.
Abayomi stated 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.
He said the initiative aims to achieve these goals through a unified, transparent public–private collaboration framework.
The commissioner explained that the projected ₦400 billion annual revenue is based on an average premium of ₦20,000 per enrolled.
He emphasized that without mass enrollment, Lagos would be unable to build a functional insurance ecosystem capable of delivering equitable, people-centred care.
Abayomi lamented that despite Lagos’ economic strength and a population exceeding 25 million, the state continues to struggle with inadequate health financing, low insurance penetration, workforce attrition and rising medical tourism.
He said the LPHP was engineered to restore fairness, transparency, quality and sustainability through a collaborative procurement platform. The initiative, he noted, represents a decisive break from a decade of fragmented and inefficient private health insurance practices characterized by unhealthy price undercutting, access restrictions and loss of trust among stakeholders.
The Lagos State Health Scheme (LSHS), popularly known as Ìlera Èkó, implements the mandatory health insurance policy. The scheme is compulsory for all residents, employers and workers, based on an Executive Order signed by Gov. Babajide Sanwo-Olu in July 2024.
The order requires enrolment in either the state-run scheme or an accredited private insurer to access non-emergency public healthcare services.
Abayomi said full enforcement of mandatory insurance would begin after a six-month sensitization period, in line with the governor’s directive to scale risk pooling, cross-subsidization and financial protection.
He described the LPHP as a strategic government tool for reversing negative health trends, improving outcomes and restoring public confidence in the state’s healthcare system.
“LPHP is underpinned by a robust digital marketplace where enrollment, provider selection, fund flow, claims management, monitoring and evaluation will occur seamlessly with clear compliance footprints. Through this system, competition will shift from price-driven rivalry to value-driven outcomes, standardized plans and quality assurance enforced by HEFAMAA,” he said.
Abayomi added that LPHP would introduce a state-managed risk equalization and solidarity fund, requiring private insurers to contribute 13 per cent of premiums to protect vulnerable populations, strengthen emergency response systems and sustain universal health coverage.
Gov. Sanwo-Olu, represented by the Secretary to the State Government, Mrs Abimbola Salu-Hundeyin, described the LPHP as a historic step toward building a resilient, future-ready health financing architecture capable of shielding households from catastrophic health expenditure.
He said the reform emerged from Lagos’ domestication of the National Health Insurance Authority (NHIA) Act of 2022 through the July 2024 Executive Order. He added that the LPHP would strengthen private health facilities, which currently deliver over 70 per cent of healthcare services in Lagos.
The governor noted that the state had adopted a population-based enrollment model for private sector employees to streamline risk distribution and subsidized plan access.
Also speaking, Dr Adebayo Adedewe, Chairman of the Lagos State Health Management Agency (LASHMA), described the LPHP as a credible solution to persistent challenges in the health insurance sector.
Dr Jimi Arigbabuwo, National Adviser on Health Insurance Matters for the Healthcare Providers Association of Nigeria (HCPAN), said the initiative signifies a major turning point in the integration of private providers into Nigeria’s healthcare system.
He urged the government to prioritize fair compensation for providers to ensure sustainability, patient satisfaction and a reduction in outbound medical tourism.
