The Lagos State Government says it can unlock more than N400 billion annually for healthcare financing if at least 20 million residents enroll in the state’s health insurance scheme.
The Commissioner for Health, Prof. Akin Abayomi, disclosed this during the launch of the Lagos Private Health Partnership (LPHP)—a major reform designed to overhaul health financing, expand insurance penetration, and guarantee equitable access to quality healthcare across the state.
Abayomi said the projection is achievable with an average annual premium of N20,000 per enrollee.
“With widespread enrollment, Lagos can inject over N400 billion annually into the healthcare financing system,” he said. “Without mass participation, we cannot build a functional insurance ecosystem capable of delivering equitable, people-centred care.”
He noted that despite Lagos’ economic strength and a population exceeding 25 million, the state still grapples with limited health financing, low insurance uptake, medical workforce attrition, and rising medical tourism.
Abayomi described LPHP as a “unified, transparent, public–private collaboration framework” designed to replace the fragmented insurance marketplace of the past decade.
According to him, the previous system was marked by “unhealthy price undercutting, enrollee access restrictions, and loss of trust among stakeholders.”
He said the new platform is purposely engineered to restore fairness, transparency, and sustainability.
“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,” the commissioner said.
He added that the framework will shift competition from price wars to value-driven outcomes, with standardised benefit plans and quality assurance enforced by the Health Facility Monitoring and Accreditation Agency (HEFAMAA).
Lagos operates its compulsory health insurance policy under the Lagos State Health Scheme (LSHS), popularly known as Ìlera Èkó.
The mandatory policy—based on an Executive Order signed by Governor Babajide Sanwo-Olu in July 2024—requires all residents, employers, and workers to enrol in either the state-run scheme or an accredited private insurer to access non-emergency public healthcare services.
Abayomi said full enforcement will commence after a six-month sensitisation window, in line with the governor’s directive to scale risk-pooling, cross-subsidisation, and financial protection for residents.
He also announced that LPHP will introduce a state-managed risk equalisation and solidarity fund, which mandates private insurers to contribute 13% of their premiums to support vulnerable groups, strengthen emergency response systems, and advance universal health coverage.
Governor 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-driven health financing architecture capable of protecting households from catastrophic health expenditure.”
He said the initiative demonstrates Lagos’ determination to transform compulsory health insurance from policy to effective and scalable action.
He said the initiative demonstrates Lagos’ determination to transform compulsory health insurance from policy to effective and scalable action.
According to him, LPHP emerged from Lagos’ domestication of the National Health Insurance Authority (NHIA) Act of 2022 through the July 2024 Executive Order.
The governor noted that the reform would significantly strengthen private health service delivery, which currently accounts for more than 70% of healthcare access in the state.
He added that the state has introduced a population-based enrollment system for employees of private organisations to streamline risk distribution and improve access to subsidised plans.
The Chairman of the Lagos State Health Management Agency (LASHMA), Dr. Adebayo Adedewe, said LPHP represents a credible solution to long-standing inefficiencies in the health insurance system.
Also speaking, the National Adviser on Health Insurance for the Healthcare Providers Association of Nigeria (HCPAN), Dr. Jimi Arigbabuwo, said the reform marks “a turning point in the recognition and integration of private sector providers in Nigeria’s healthcare services.”
He urged the government to ensure fair compensation for providers to guarantee long-term success.