…Targets Health Insurance Expansion, Funding Gap Closure at Ministrial Briefing
Lagos State Government on Tuesday declared that mandatory health insurance and stronger public-private partnerships remain the cornerstone of its healthcare financing reforms as it moves to close an estimated N100 billion gap between current health sector funding and projected healthcare needs in the state.
Speaking at the Year 2026 Ministerial Press Briefing held at the Bagauda Kaltho Press Centre, Alausa-Ikeja, the Lagos State Commissioner for Health, Prof. Akin Abayomi, said the state was intensifying efforts to expand health insurance coverage, improve healthcare infrastructure and reposition Lagos as a leading medical tourism destination in Africa.
The briefing formed part of activities commemorating the seventh year in office of Governor Babajide Sanwo-Olu and Deputy Governor Kadri Obafemi Hamzat.
Abayomi disclosed that Lagos currently spends about eight per cent of its budget on health, far below the 15 per cent benchmark recommended under the Abuja Declaration, stressing that alternative financing mechanisms had become imperative for the sustainability of healthcare delivery.
According to him, “There is a gap between what is available to us through our budget and what we ideally want to spend. The blue bar is our current budget, while the red bar is our wish budget, and there is a gap of at least N100 billion between what we get and what we want.”
He explained that dwindling donor support and rising healthcare demands in a rapidly growing megacity necessitated the megacity’s aggressive push for mandatory health insurance and stronger collaboration with the private sector.
“The answer for us really is two things: health insurance and public-private partnership. This is where we are focused at the moment in Lagos State,” the Commissioner said.
Abayomi noted that Governor Sanwo-Olu had domesticated the National Health Insurance Authority Act through an Executive Order signed on July 16, 2024, making health insurance mandatory for all residents living in Lagos State.
He stated that Ministries, Departments and Agencies had already commenced implementation of enforcement measures requiring residents seeking government services to show evidence of accredited health insurance coverage.
According to him, the initiative is expected to significantly increase health insurance enrollment and create a sustainable financing pool capable of strengthening healthcare facilities, improving infrastructure and supporting vulnerable populations through equity funding mechanisms.
“Health insurance is the umbrella by which the healthy look after the sick and the rich look after the poor. It is a solidarity phenomenon,” Abayomi said.
The Commissioner revealed that over 1.46 million residents had already been enrolled under the Lagos State Health Management Agency’s Ilera-Eko health insurance scheme, noting, however, that the state still had a long way to go in achieving universal health coverage.
He lamented that about 77 per cent of healthcare spending in Nigeria currently comes directly from citizens’ pockets, while only two per cent is financed through insurance, describing the situation as unsustainable and anomalous.
Speaking on Lagos’ long-term health vision, Abayomi said the state’s 2052 Development Plan was designed to transform Lagos into a model megacity and position the top three healthcare destinations in Africa within the next decade.
He explained that the plan focuses on universal health coverage, reduction of maternal mortality, strengthening primary healthcare, improving child nutrition and reversing outbound medical tourism.
“We do not want Lagosians travelling abroad to seek healthcare in Dubai, London, India or South Africa. We want to provide every speciality and subspecialty needed right here in Lagos,” he said.
The Commissioner also stressed the need to regulate and integrate the informal healthcare sector, including community pharmacies, patent medicine vendors and traditional medicine practitioners, into the broader healthcare ecosystem.
According to him, healthcare delivery in Lagos extends beyond government hospitals as over 3,500 registered private health facilities currently operate across the state alongside numerous informal providers serving as first points of care for many residents.
Abayomi further disclosed that Lagos State recently held a strategic retreat involving the Ministry of Health, Primary Health Care Board and Local Government Chairmen to develop a performance-based compact aimed at strengthening coordination across all tiers of healthcare delivery.
He said the compact would focus on clearer role delineation, coordinated resource disbursement, digital health integration, improved workforce planning and stronger primary healthcare service delivery.
On human resources for health, the Commissioner acknowledged the global shortage of healthcare professionals and the impact of migration on Nigeria’s health workforce, but maintained that Lagos was implementing strategies to reverse the trend through improved welfare and expanded training opportunities.
He announced that approval had been granted for the establishment of a standalone University of Medicine and Health Sciences in Lagos State to increase the production of doctors, nurses, pharmacists and other healthcare professionals.
Abayomi explained that the institution would decentralise clinical training across primary, secondary and private healthcare facilities while leveraging diaspora specialists and existing professionals within the state health system.
He added that ongoing infrastructure redesign and modernisation projects would improve patient experience, staff welfare, sustainability and overall healthcare outcomes in the state.
In her remarks, the Special Adviser to the Governor on Health, Dr Mrs. Kemi Ogunyemi, highlighted the critical role of the Health Facility Monitoring and Accreditation Agency (HEFAMAA) in safeguarding patient safety and regulating healthcare standards across Lagos.
She noted that Lagos remained the first state in Nigeria to establish an agency solely dedicated to healthcare facility regulation and patient safety, adding that other states and even the Federal Government were now studying the Lagos model.
Ogunyemi disclosed that the increasing number of hospitals, cosmetic medical spas and healthcare facilities across Lagos had stretched the agency’s operational capacity, necessitating collaboration with franchise organisations and trained professionals to support monitoring and accreditation activities.
“If you do not see the HEFAMAA accreditation sign in a facility, please do not use that facility. If you see something concerning poor and substandard practise, say something. We rely on the public to help us ensure patient safety,” she said.
Earlier in his opening remarks, the Permanent Secretary, Ministry of Information and Strategy, praised the remarkable progress recorded in Lagos healthcare delivery, particularly in emergency response services, infrastructure expansion and primary healthcare strengthening.
He also celebrated the contributions of women in healthcare and nation-building while urging stakeholders to participate actively and constructively during the engagement.
Delivering the closing remarks, the Permanent Secretary, Lagos State Ministry of Health, Dr. Dayo Lajide, expressed appreciation to Governor Sanwo-Olu for his continued support and investment in the health sector.
Lajide also commended healthcare workers across primary, secondary and tertiary facilities for their resilience, sacrifices and commitment to quality healthcare delivery despite mounting pressures and increasing healthcare demands across the state.
