LAGOS GOVT LAUNCHES MAJOR HEALTH FINANCING REFORMS TO EXPAND INSURANCE COVERAGE
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By: Sefiu Ajape
The Lagos State Government on Tuesday launched the Lagos Private Health Partnership (LPHP), a comprehensive framework aimed at accelerating progress toward Universal Health Coverage (UHC) by strengthening health financing and boosting insurance uptake across the state.
Designed to eliminate distrust, unhealthy pricing practices, and opaque insurance management, the LPHP seeks to ensure equitable access to quality healthcare for all residents through a unified and transparent public-private collaboration system.
Delivering the keynote address on behalf of Governor Babajide Sanwo-Olu, the Secretary to the State Government, Barrister Abimbola Salu-Hundeyin, described the initiative as a landmark step toward establishing a resilient, future-ready health financing structure capable of shielding households from catastrophic medical expenses.
She said the launch, held at the Civic Centre, Victoria Island, reinforces Lagos’ commitment to transforming compulsory health insurance mandates into a scalable and sustainable reality.
The ceremony attracted top government officials, regulators, private insurers, development partners, and financial institutions—all reaffirming their commitment to achieving sustainable health financing and universal coverage.
Sanwo-Olu explained that the LPHP is an outcome of Lagos’ domestication of the National Health Insurance Authority Act 2022, following an Executive Order he signed in July 2024, which made health insurance mandatory for all residents and established clear enforcement mechanisms.
He added that a multi-stakeholder Technical Working Group developed the operational guidelines and the LPHP framework to align private sector participation with policy direction, risk pooling, and digital accountability.
According to him, the reform will strengthen private healthcare service delivery—which currently accounts for more than 70 percent of healthcare encounters in Lagos—while establishing a structured framework that balances profitability, service quality, and equity.
The governor also announced that Lagos has adopted a population-based enrollment model for employees of private organizations to improve risk distribution and expand access to subsidised health plans.
Earlier, the Commissioner for Health, Prof. Akin Abayomi, said the launch marks a decisive departure from a decade of fragmented and inefficient private health insurance practices characterized by unhealthy price competition, unpopular enrollee access restrictions, and eroded stakeholder trust.
Abayomi explained that the LPHP was intentionally designed to restore fairness, transparency, quality, and long-term sustainability through a collaborative procurement platform.
He lamented that despite Lagos’ economic strength and its population of more than 25 million, the state continues to face challenges including inadequate health financing, low insurance penetration, workforce attrition, and rising medical tourism. He described LPHP as the government’s strongest tool yet for reversing these trends, improving health indicators, and rebuilding public confidence in domestic healthcare capacity.
The commissioner further disclosed that the LPHP is supported by a robust digital marketplace where enrollment, provider selection, fund administration, claims management, monitoring, reporting, and evaluation will occur seamlessly with full compliance tracking.
Through this system, he said, competition will shift from price-driven battles to value-based services, standardized plans, and quality assurance enforced by HEFAMAA.
He reiterated that full enforcement of mandatory health insurance will begin after a six-month sensitization window, in line with the governor’s directive to scale risk pooling, cross-subsidization, and financial protection.
Abayomi also revealed that the LPHP will introduce a state-managed risk equalization and solidarity fund, requiring private insurers to contribute 13 percent of premiums to support vulnerable populations, strengthen emergency care, and sustain UHC goals. He projected that Lagos could inject over ₦400 billion annually into the healthcare financing ecosystem if 20 million residents enroll at an average premium of ₦20,000 per year.
In a goodwill message, Chairman of the Lagos State Health Management Agency, Dr. Adebayo Adedewe, described the LPHP as a credible solution to longstanding gaps in the health insurance sector. He commended the government’s extensive stakeholder engagement and technical design process, calling the launch a “watershed moment” in the evolution of health financing in Lagos.
National Adviser on Health Insurance Matters for the Healthcare Providers Association of Nigeria, Dr. Jimi Arigbabuwo, said the launch represents a turning point in the integration of private healthcare providers who deliver most of the country’s health services.
He urged government to prioritize fair provider compensation to ensure sustainability, patient satisfaction, and a reduction in outbound medical tourism.
Also speaking, the Managing Director/CEO of Sterling Bank Plc, Mr. Abubakar Suleiman, said the bank’s involvement aligns with its HEART (Health, Education, Agriculture, Renewable Energy, Transport) agenda. He noted that healthcare financing remains excessively costly without structural reform and affirmed that Sterling Bank will continue to provide financial and digital infrastructure to support the LPHP’s long-term success.
He added that Lagos has set a pioneering example for Africa by creating a unified digital marketplace where transparency, integrated payment systems, and enrollee empowerment drive value-based healthcare delivery. Suleiman emphasized that the bank’s collaboration goes beyond finance to include strategic technology deployment for real-time accountability.
Stakeholders at the event agreed that the LPHP represents one of Nigeria’s most comprehensive health financing reforms and has strong potential as a scalable model for national adoption. They stressed that its success will require continuous multi-sector collaboration, public sensitization, and strict enforcement.
The event concluded with a unified call urging residents, private employers, civil society groups, insurers, and healthcare providers to support the vision of delivering affordable, digitized, dignified, and universal healthcare to every Lagos resident.
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