The Lagos State Government says it can unlock more than four hundred billion naira annually for healthcare financing if at least twenty million residents enroll in the state’s health insurance scheme. The Commissioner for Health explained that the projection is based on an average annual premium of twenty thousand naira per enrollee, noting that mass participation remains the single most important requirement for building a functional insurance ecosystem capable of delivering equitable and people-centred healthcare across the state.
He spoke during the launch of the Lagos Private Health Partnership, a major reform that seeks to overhaul the state’s health financing structure, deepen insurance penetration and guarantee fair access to quality healthcare. He said Lagos, despite its economic strength and a population exceeding twenty-five million, still faces persistent challenges ranging from low insurance uptake and weak financing to workforce attrition and the rising rate of medical tourism.
The new framework is designed to replace the fragmented insurance marketplace of the past decade. According to him, the previous system had been plagued by unhealthy price undercutting, restricted access for enrollees and a general erosion of trust among key stakeholders. He described the Lagos Private Health Partnership as a unified and transparent collaboration model that places both public and private actors on a single digital marketplace. Enrollment, provider selection, fund flow, claims management, monitoring and reporting will all take place through this platform, allowing for seamless oversight and compliance.
The reform shifts competition away from price wars toward value-driven service delivery, supported by standardised benefit plans and quality assurance mechanisms supervised by the state’s monitoring and accreditation agency. The government expects this structure to stabilise the ecosystem, improve service quality and restore confidence among residents and healthcare providers.
Lagos operates a compulsory health insurance policy under its state health scheme, widely known as Ìlera Èkó. The mandate, introduced through an executive order signed in July 2024, requires all residents, employers and workers to enroll either in the state-run plan or through an accredited private insurer before accessing non-emergency public healthcare services. Full enforcement will begin after a six-month sensitisation phase, a move aimed at strengthening risk-pooling and financial protection for households.
The reform also introduces a state-managed risk equalisation and solidarity fund, which requires private insurers to contribute thirteen percent of their premiums to support vulnerable groups, expand emergency response systems and accelerate progress toward universal health coverage.
The governor, represented at the event, described the initiative as a historic step toward building a resilient and future-focused health financing framework capable of shielding families from catastrophic medical expenses. He explained that the Lagos Private Health Partnership is part of the state’s domestication of the National Health Insurance Authority Act, noting that it is expected to strengthen the private sector, which currently delivers more than seventy percent of healthcare services in Lagos. He added that the state has adopted a population-based enrollment system for employees of private organizations to improve risk distribution and widen access to subsidised plans.
Stakeholders at the event described the reform as a credible solution to long-standing inefficiencies. Representatives of healthcare providers said the initiative marks a turning point in the proper integration of private sector facilities into the health insurance system. They urged the government to ensure fair compensation for providers to maintain service quality and sustain long-term participation.
These reforms come at a time when rising drug prices, increased import costs and higher hospital consumables are reshaping Nigeria’s healthcare financing landscape. Many hospitals have been forced to review tariffs upward, and Health Maintenance Organisations have increased premiums significantly to stay afloat. Between 2024 and 2025, insurance premiums rose sharply across nearly every category, with adjustments ranging from eight percent for basic plans to nearly sixty percent for top-tier packages. The pressures have shifted more financial burden to consumers, many of whom now struggle to afford consistent, quality healthcare.
For small businesses and self-employed workers, the Lagos reforms may provide renewed access to more predictable health spending, especially as mass enrollment and risk equalisation have the potential to stabilise premiums over time. The success of this transition, however, depends on how quickly residents embrace the system and how effectively the government enforces compliance after the sensitisation phase ends.
