Lagos State Commissioner for Health, Prof. Akin Abayomi, says the state could channel more than ₦400 billion into its healthcare system each year if at least 20 million residents enrol in the state health insurance scheme.
He made the remark during the launch of the Lagos Private Health Partnership (LPHP), a new reform initiative aimed at overhauling health financing, boosting insurance uptake, and widening access to quality care across the state.
According to Abayomi, the LPHP is built on a unified and transparent public–private collaboration model intended to streamline procurement and improve accountability. He noted that the estimated ₦400 billion annual inflow is achievable if residents pay an average annual premium of ₦20,000.
He stressed that Lagos cannot achieve an effective, equitable insurance-driven health system without mass enrolment, adding that improved coverage is essential for delivering people-centred care.
The commissioner expressed concern that despite Lagos’ strong economic profile and a population exceeding 25 million, the state still grapples with low insurance penetration, underfunded health services, workforce shortages, and rising medical tourism.
He said the LPHP was specifically created to restore fairness, transparency, quality, and long-term sustainability, especially after years of fragmented private insurance practices marked by unhealthy price competition, restrictive access, and eroding trust.
The state’s insurance programme operates under the Lagos State Health Scheme (LSHS), commonly known as Ìlera Èkó, which is compulsory for all residents, employers, and workers. The mandate follows an Executive Order signed by Governor Babajide Sanwo-Olu in July 2024, requiring residents to be enrolled in either the state scheme or an accredited private insurer before accessing non-emergency public health services.
Abayomi reaffirmed that full enforcement will commence after a six-month public sensitisation period, in line with the governor’s directive to strengthen risk-pooling, cross-subsidisation, and financial protection for citizens.
He described the LPHP as a strategic tool designed to reverse negative health trends, improve outcomes, and rebuild public confidence in the state’s healthcare system.
“The LPHP is anchored on a comprehensive digital marketplace where enrolment, provider selection, fund flow, claims processing, monitoring, reporting, and evaluation will take place seamlessly with clear compliance trails,” he said.
“Through this system, competition will shift from price-based rivalry to value-driven performance, with standardised plans and strict quality oversight from HEFAMAA,” he added.
