The launch, held Tuesday at the Civic Centre, Victoria Island, brought together government officials, regulators, insurers, development partners, and financial institutions to underscore a collective commitment to sustainable health financing and universal health coverage.
Delivering the keynote address on behalf of Governor Babajide Sanwo-Olu, Secretary to the State Government Abimbola Salu-Hundeyin described the LPHP as “a historic step toward building a resilient and future-driven health financing architecture capable of protecting households from catastrophic expenditure.” She noted that the program reflects Lagos’ determination to implement mandatory health insurance effectively, in a scalable and economically viable manner.
The LPHP builds on Lagos’ domestication of the National Health Insurance Authority Act of 2022, formalized via an executive order in July 2024 mandating health insurance for all residents. Operational guidelines developed by a multi-stakeholder Technical Working Group now govern private sector participation, risk pooling, and digital accountability.
Governor Sanwo-Olu highlighted that the initiative will strengthen private healthcare delivery, which currently accounts for more than 70% of health services in Lagos. He stressed that insurers and providers will operate within a framework that balances profitability, service quality, and equitable access. A population-based enrolment model for employees of private organisations is expected to streamline risk distribution and enable subsidized plan access.
State Commissioner for Health, Prof. Akin Abayomi, described LPHP as “a decisive break from a decade-long fragmented and inefficient private health insurance marketplace,” citing issues such as unhealthy price competition, restrictive enrollee policies, and eroded trust among stakeholders. He explained that the partnership aims to restore fairness, transparency, quality, and sustainability through a collaborative digital platform.
Abayomi also noted that despite Lagos’ economic strength and population exceeding 25 million, the state faces challenges including inadequate health financing, low insurance penetration, workforce attrition, and high rates of medical tourism. The LPHP is designed to address these gaps, leveraging digital tools to manage enrolment, provider selection, fund flows, claims, and monitoring in a seamless, transparent process.
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| From L-R: Chairman, Lagos State Health Management Agency (LASHMA), Dr. Adebayo Adedewe; Special Adviser to the Governor on Taxation and Revenue,Mr. Abdul-Kabir Opeyemi Ogunbo; Lagos State Commissioner for Commerce, Cooperatives, Trade & Investment, Mrs. Folashade Ambrose-Medebem; Secretary to the State Government, Lagos State, Barr. Abimbola Salu-Hundeyin; Lagos State Commissioner for Health, Prof. Akin Abayomi; President Healthcare Federation of Nigeria, Njide Ndili; National President Healthcare Providers Association of Nigeria (HCPAN), Dr. Jimmy Arigbabuwo and Representative of the Special Adviser to the Governor on Health, Mrs. Sarah Balogun at the Launch of the Lagos State Health Financing Reforms A.KA. Lagos Private Health Partnership (LPHP) by the Ministry of Health at the Civic Centre, VI today |
A state-managed risk equalisation and solidarity fund will require private insurers to contribute 13% of premiums to support vulnerable populations, enhance emergency response capacity, and sustain universal health coverage. Estimates suggest that with 20 million residents enrolled at an average premium of ₦20,000 annually, Lagos could inject over ₦400 billion into the healthcare system each year.
Stakeholders praised the initiative as a landmark reform. Dr. Adebayo Adedewe, Chairman of the Lagos State Health Management Agency, called LPHP “a credible solution to long-standing challenges.” Dr. Jimi Arigbabuwo, National Adviser on Health Insurance Matters for the Healthcare Providers Association of Nigeria, described the launch as “a turning point in recognising and integrating private sector providers” while emphasizing fair compensation to sustain the model.
Sterling Bank Plc confirmed its support through its HEART agenda (Health, Education, Agriculture, Renewable Energy, Transport), with Managing Director Abubakar Suleiman highlighting the importance of structural reform in reducing healthcare costs and enabling digital governance. He praised Lagos for creating a pioneering model for Africa that combines transparency, integrated payment systems, and enrollee empowerment to drive value-based care.
Officials stressed that the LPHP could serve as a scalable template for national adoption, provided there is continued multi-sector commitment, public awareness, and robust policy enforcement. Next steps include onboarding health maintenance organizations (HMOs), pilot implementation, system review, and full statewide rollout, positioning Lagos as a potential hub for medical investment, health technology, and workforce retention in Africa.