The Lagos State Government says it could channel over ₦400 billion annually into healthcare financing if 20 million residents enroll in the state’s health insurance scheme.
Commissioner for Health, Prof. Akin Abayomi, disclosed this during the inauguration of the Lagos Private Health Partnership (LPHP), an initiative designed to expand insurance coverage, restructure health financing, and improve access to quality care through public–private collaboration.
Abayomi explained that the target funding assumes an average annual premium of ₦20,000 per enrollee. He warned that without broad participation, Lagos’ insurance ecosystem would remain fragmented, limiting equitable, people-centred care.
“Despite Lagos’ economic strength and a population exceeding 25 million, the state faces persistent health financing gaps, low insurance penetration, workforce attrition, and growing medical tourism,” he said.
The LPHP introduces a unified digital platform for enrolment, provider selection, fund flow, claims management, and reporting, aiming to shift competition from price-based rivalry to value-driven outcomes and quality assurance. A state-managed risk equalisation and solidarity fund will require private insurers to contribute 13% of premiums to protect vulnerable populations and sustain universal coverage.
Governor Babajide Sanwo-Olu, represented by Secretary to the State Government, Abimbola Salu-Hundeyin, described the LPHP as a historic step toward resilient, future-driven health financing. He noted that over 70% of healthcare in Lagos is delivered by private providers and emphasised that the LPHP would standardise service quality while balancing profitability and equity.
The initiative follows Lagos’ domestication of the National Health Insurance Authority Act (2022) through an executive order in July 2024. Health sector stakeholders, including Dr. Adebayo Adedewe (LASHMA) and Dr. Jimi Arigbabuwo (HCPAN), welcomed LPHP as a credible solution to longstanding challenges, stressing the importance of fair compensation for providers to reduce medical tourism and sustain patient satisfaction.
