The Lagos State Government yesterday unveiled fresh healthcare financing, workforce and infrastructure reforms targeted at bridging an estimated N100 billion funding gap in the health sector.
Speaking at the 2026 Ministerial Press Briefing, the Commissioner for Health Akin Abayomi said mandatory health insurance and stronger public-private partnerships would drive the reforms as the state seeks to expand healthcare coverage and reverse outbound medical tourism. The event was part of the activities marking the seventh anniversary of the Babajide Sanwo-Olu government.
According to the professor, the state government currently allocates about eight per cent of its budget to health, below the 15 per cent benchmark recommended under the Abuja Declaration. He stressed the need for alternative financing mechanisms to sustain healthcare delivery.
Abayomi said: “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 state’s aggressive push for mandatory health insurance and stronger collaboration with the private sector. The commissioner said: “The answer for us really is two things: health insurance and public-private partnership.
This is where we are focused at the moment.” Abayomi said SanwoOlu had already domesticated the National Health Insurance Authority Act through an Executive Order signed on July 16, 2024, making health insurance compulsory for all Lagos residents.
According to him, Ministries, Departments and Agencies have begun implementing measures requiring residents seeking government services to provide evidence of accredited health insurance coverage.
