The Lagos State Government says its administration can inject over N400 billion annually into the healthcare financing system if 20 million residents enrol in the state’s health insurance scheme.
The Commissioner for Health, Prof. Akin Abayomi, said this during the inauguration of the Lagos Private Health Partnership (LPHP).
The LPHP is a reform initiative designed to restructure health financing, expand insurance coverage, and ensure equitable access to quality healthcare for residents.
According to Abayomi, the initiative aimed to achieve this through a unified, transparent, public–private collaboration framework.
The commissioner explained that the projected N400 billion annually into the healthcare financing system could be achieved with an average premium of N20,000 yearly.
He emphasised that without widespread enrolment, Lagos would not actualise a functional insurance ecosystem capable of delivering equitable, people-centred care.
Abayomi lamented that in spite of Lagos’ economic prowess and booming population exceeding 25 million, the state continued to suffer from inadequate health financing, low insurance penetration, workforce attrition, and increasing medical tourism.
He emphasised that the LPHP was purposely engineered to restore fairness, transparency, quality, and sustainability through a collaborative procurement platform.
The commissioner noted that it was a decisive break from a decade-long fragmented and inefficient private health insurance marketplace characterised by unhealthy price undercutting, unpopular enrollee access restrictions, and loss of trust among stakeholders.
Abayomi explained that LPHP would introduce a state-managed risk equalisation and solidarity fund, requiring private insurers to contribute 13 percent of premiums to protect vulnerable populations, strengthen emergency response, and sustain universal health coverage commitments.
Also, Dr Adebayo Adedewe, Chairman, Lagos State Health Management Agency (LASHMA), described LPHP as a credible solution to long-standing challenges in the health insurance space.
Commenting, Dr Jimi Arigbabuwo, National Adviser on Health Insurance Matters for the Healthcare Providers Association of Nigeria (HCPAN), said LPHP signifies a turning point in the recognition and integration of private sector providers to Nigeria’s healthcare services.
Arigbabuwo urged the government to prioritise fair compensation for providers to guarantee sustainability, patient satisfaction, and reduction in outbound medical tourism.
