LAGOS EYES N400BN ANNUAL HEALTHCARE FUNDING THROUGH WIDER INSURANCE COVERAGE
Read Time:2 Minute, 7 Second
By: Sefiu Ajape
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, stated this during the launch of the Lagos Private Health Partnership (LPHP)—a major reform aimed at overhauling health financing, expanding insurance penetration, and ensuring equitable access to quality healthcare across the state.
Abayomi explained that the projection is attainable 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-centered care.”
He noted that despite Lagos’ economic strength and a population of more than 25 million, the state continues to face challenges such as limited health financing, low insurance uptake, medical workforce attrition, and rising medical tourism.
A new unified model for health financing
Abayomi described LPHP as a “unified, transparent, public–private collaboration framework” created to replace the fragmented insurance marketplace of the past decade.
According to him, the previous landscape was characterized by “unhealthy price undercutting, enrollee access restrictions, and loss of trust among stakeholders.”
He said the new platform is intentionally designed to restore fairness, transparency, and long-term 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-based rivalry to value-driven outcomes, supported by standardised benefit plans and quality assurance supervised by the Health Facility Monitoring and Accreditation Agency (HEFAMAA).
Mandatory insurance enforcement begins after sensitisation
Lagos runs its compulsory health insurance policy through the Lagos State Health Scheme (LSHS), widely known as Ìlera Èkó.
The mandatory policy—guided by an Executive Order signed by Governor Babajide Sanwo-Olu in July 2024—requires all residents, employers, and workers to enroll in either the state-run scheme or an accredited private insurer to access non-emergency public healthcare services.
Abayomi said full enforcement will begin after a six-month sensitisation window, following the governor’s directive to scale risk pooling, cross-subsidisation, and financial protection for residents.
He also revealed 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 populations, strengthen emergency response systems, and advance universal health coverage.
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
0 %
0
0