The Lagos State Government has reaffirmed its commitment to healthcare reform, emphasizing mandatory health insurance and expanded public-private partnerships as key strategies to address a projected ₦100 billion shortfall in health sector funding.
Speaking at the 2026 Ministerial Press Briefing in Alausa, the Commissioner for Health, Akin Abayomi, stated that the government is intensifying efforts to broaden health insurance coverage, upgrade healthcare infrastructure, and position Lagos as a leading destination for medical services in Africa.
The briefing marked part of activities commemorating the seventh anniversary of the administration of Babajide Sanwo-Olu and his deputy, Obafemi Hamzat.
Currently, Lagos allocates approximately eight percent of its annual budget to healthcare—significantly below the 15 percent benchmark established under the Abuja Declaration. According to Abayomi, this funding gap has made alternative financing mechanisms essential.
He noted that declining donor support, combined with increasing demand in a rapidly growing urban population, has necessitated a stronger focus on health insurance and private sector collaboration. The state has already implemented policies requiring residents to present valid health insurance coverage when accessing certain government services.
The Commissioner highlighted that the mandatory insurance policy stems from the domestication of the National Health Insurance Authority Act, enacted via an executive order signed in July 2024. The initiative aims to expand enrollment and establish a sustainable funding pool for healthcare delivery, including support for vulnerable populations.
Data from the Lagos State Health Management Agency indicates that over 1.46 million residents have enrolled in the Ilera-Eko health insurance scheme. However, significant gaps remain, particularly given that approximately 77 percent of healthcare spending in Nigeria is still financed out-of-pocket, with only a small fraction covered by insurance.
Looking ahead, the state’s long-term development strategy seeks to transform Lagos into one of Africa’s top three healthcare destinations within the next decade. Key priorities include achieving universal health coverage, reducing maternal mortality, strengthening primary healthcare systems, and limiting outbound medical tourism.
Abayomi also underscored the importance of integrating informal healthcare providers—such as community pharmacies and traditional practitioners—into the formal health system. He noted that Lagos hosts more than 3,500 registered private healthcare facilities, alongside numerous informal providers that serve as first points of care for many residents.
In addition, the government is pursuing reforms aimed at improving coordination across all levels of healthcare delivery. These include performance-based agreements, enhanced digital integration, and more effective workforce planning.
Addressing human resource challenges, Abayomi acknowledged the impact of global healthcare worker shortages and migration trends. In response, the state has approved the establishment of a new University of Medicine and Health Sciences to expand training capacity for healthcare professionals and strengthen the workforce pipeline.
Complementing these efforts are ongoing infrastructure modernization projects designed to improve patient experience, staff welfare, and overall service delivery.
Also speaking at the event, the Special Adviser to the Governor on Health, Kemi Ogunyemi, highlighted the role of the Health Facility Monitoring and Accreditation Agency (HEFAMAA) in ensuring patient safety and regulatory compliance. She noted that the growing number of healthcare facilities has increased the agency’s workload, prompting the need for additional collaboration and oversight mechanisms.
Officials at the briefing commended the progress made in emergency response services, infrastructure development, and primary healthcare strengthening, while acknowledging the continued need for investment and systemic improvements to meet the healthcare demands of Lagos’ expanding population.
