Lagos eyes mandatory health insurance, PPPs to close N100 billion healthcare funding gap

MaTaZ ArIsInG
Dallas, Texas

Mr Abayomi outlined Lagos’ broader healthcare vision under its 2052 Development Plan

The Lagos State Commissioner for Health, Akin Abayomi, said this on Tuesday at the 2026 Ministerial Press Briefing held at the Bagauda Kaltho Press Centre in Alausa, Ikeja.

The briefing was part of activities marking the seventh anniversary of the administrations of Governor Babajide Sanwo-Olu and Deputy Governor Obafemi Hamzat.

Mr Abayomi said the state was intensifying reforms aimed at expanding insurance coverage, strengthening healthcare infrastructure and positioning Lagos as a leading medical tourism hub in Africa.

He said Lagos State currently allocates about eight per cent of its budget to health, significantly below the 15 per cent benchmark recommended under the Abuja Declaration, creating a substantial funding shortfall in the face of rising healthcare demands.

“There is a gap between what is available to us through our budget and what we ideally want to spend,” he said.

The commissioner added that the state required at least N100 billion more to adequately fund its healthcare aspirations.

Mr Abayomi said declining donor support and the growing demands of an expanding megacity made alternative healthcare financing unavoidable.

“The answer for us really is two things: health insurance and public-private partnership. This is where we are focused at the moment in Lagos State,” he said.

Mr Abayomi stated that Mr Sanwo-Olu had already domesticated the National Health Insurance Authority Act through an executive order signed in July 2024, making health insurance mandatory for all residents in the state.

According to him, ministries, departments and agencies have begun implementing enforcement measures requiring residents seeking government services to present evidence of accredited health insurance coverage.

He said the initiative was expected to deepen enrolment in the state-backed Ilera-Eko insurance scheme and create a sustainable financing pool to improve healthcare infrastructure and support vulnerable populations.

The commissioner noted that about 1.46 million residents had already enrolled in the Ilera-Eko scheme, although he acknowledged that Lagos still remained far from universal health coverage.

He described Nigeria’s healthcare financing structure as unsustainable, noting that about 77 per cent of healthcare spending currently comes directly from citizens’ pockets, while only two per cent is financed through insurance.

Mr Abayomi also outlined Lagos’ broader healthcare vision under its 2052 Development Plan, which aims to position the state among Africa’s top three healthcare destinations within the next decade.

According to him, the plan prioritises universal health coverage, maternal and child healthcare, stronger primary healthcare systems and the reduction of outbound medical tourism.

“We do not want Lagosians travelling abroad to seek healthcare in Dubai, London, India or South Africa. We want to provide every speciality and subspeciality needed right here in Lagos,” he said.

The commissioner further stressed the need to integrate informal healthcare providers, including community pharmacies, patent medicine vendors and traditional medicine practitioners, into the formal healthcare ecosystem.

He noted that more than 3,500 registered private healthcare facilities currently operate in Lagos alongside numerous informal providers that often serve as the first point of care for residents.

On healthcare manpower shortages, Mr Abayomi acknowledged the impact of migration and the global demand for health workers but said the state was responding through improved welfare packages and expanded training opportunities.

He announced that approval had been granted for the establishment of a standalone university of medicine and health sciences in Lagos State to increase the production of doctors, nurses, pharmacists and other health professionals.

He said the proposed institution would decentralise clinical training across primary, secondary and private healthcare facilities while also leveraging diaspora expertise.

Also speaking, the special adviser to the governor on health, Kemi Ogunyemi, highlighted the role of the Health Facility Monitoring and Accreditation Agency in regulating healthcare standards and ensuring patient safety across the state.

She warned residents against patronising unaccredited health facilities and urged the public to report cases of substandard medical practice.

“If you do not see the HEFAMAA accreditation sign in a facility, please do not use that facility,” she said.

The Permanent Secretary of the Lagos State Ministry of Health, Dayo Lajide, commended healthcare workers across the state for their resilience amid growing healthcare pressures and increasing demand for services. 

(NAN)

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