By Destiny Obinna
Lagos State Governor, Babajide Sanwo-Olu, has given employers, workers and residents until December 31, 2026, to secure appropriate health insurance coverage ahead of the enforcement of mandatory health insurance from January 1, 2027.
The governor announced the deadline on Tuesday at the launch of the Lagos Private Health Plan (LPHP) Partnership at Lagos Continental Hotel, Victoria Island, where 21 Health Maintenance Organisations (HMOs) endorsed the initiative.
Sanwo-Olu said the plan, anchored on Executive Order EO/BOS/01/2024 signed on July 16, 2024, was designed to expand health insurance coverage and reduce residents’ dependence on out-of-pocket payments for healthcare.
He explained that while the existing Ilera Eko scheme primarily supports vulnerable populations and informal-sector workers, the LPHP provides additional options for salaried employees and corporate organisations.
According to him, actuarial analysis of about two million claims and enrolment records informed the development of the new plan, which is expected to strengthen healthcare financing and improve access to services.
The governor said the state had established an implementation steering committee and an enforcement task force to ensure compliance, directing relevant authorities to provide operational guidelines and enrolment support before the deadline.
“We want compliance, not unnecessary confrontation,” he said, urging employers and workers to use the grace period to select suitable plans and complete registration.
Sanwo-Olu added that the initiative would make payments to healthcare providers more predictable, improve service delivery and reduce pressure on public hospitals. Part of the contributions, he said, would also support the Lagos State Health Equity Fund and public healthcare infrastructure.
Commissioner for Health, Prof. Akin Abayomi, described the initiative as a major shift in healthcare financing, saying mandatory participation was necessary to create a broad insurance pool capable of spreading healthcare costs and protecting households from financial hardship.
He said Lagos was targeting an increase in insured residents from about two million to at least 10 million, adding that participating organisations were accredited by the National Health Insurance Authority.
Special Adviser to the Governor on Health, Dr Kemi Ogunyemi, said the executive order provides the legal framework for compulsory health insurance and requires public and private employers to provide coverage for their workers.
She described the LPHP as an opportunity for individuals, families and employers to choose from accredited insurance plans suited to their needs.
Chairman of the Governing Board of the Lagos State Health Management Agency, Dr Adebayo Adedewe, disclosed that funding for the Lagos State Health Equity Fund had risen from ₦1 billion to ₦3 billion, with a target of enrolling 500,000 vulnerable residents.
Permanent Secretary, Lagos State Ministry of Health, Dr Dayo Lajide, said out-of-pocket payments accounted for 58 per cent of Nigeria’s total health expenditure in 2024, citing a report by the National Health Insurance Authority.
She said the new plan would build on Lagos’ existing insurance framework and help shield more households from healthcare-related financial distress.
Meanwhile, National President of the Healthcare Providers Association of Nigeria, Dr Aipoh Augustine, called for transparent implementation, timely reimbursement of providers and simplified payment procedures.
National President of the Guild of Medical Directors, Dr Raymond Abiodun Kuti, also stressed the need for transparency, accountability and sustained engagement with private healthcare providers.
The state government said enrolment would be supported through a digital platform, while operational guidelines would clarify contributions, minimum benefit packages and the responsibilities of participating organisations.
Full enforcement of mandatory health insurance is scheduled to begin on January 1, 2027.
