The Lagos State Government has unveiled fresh healthcare financing, workforce and infrastructure reforms aimed at closing an estimated N100 billion gap between current health sector funding and projected healthcare needs in the state.
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.
Abayomi spoke on Tuesday at the 2026 Ministerial Press Briefing held at the Bagauda Kaltho Press Centre, Alausa-Ikeja, as part of activities marking the seventh anniversary of the administration of Governor Babajide Sanwo-Olu and Deputy Governor Kadri Obafemi Hamzat.
He said Lagos currently allocates about eight per cent of its budget to health, below the 15 per cent benchmark recommended under the Abuja Declaration, stressing the need for alternative financing mechanisms to sustain healthcare delivery.
According to him, the state faces a funding shortfall of at least N100 billion between available resources and projected healthcare spending requirements.
Abayomi said dwindling donor support and rising healthcare demands in Lagos necessitated aggressive implementation of mandatory health insurance and deeper collaboration with the private sector.
He disclosed that Governor Sanwo-Olu had domesticated the National Health Insurance Authority Act through an Executive Order signed on July 16, 2024, making health insurance compulsory for all Lagos residents.
The commissioner said Ministries,
Departments and Agencies had commenced enforcement measures requiring residents seeking government services to provide evidence of accredited health insurance coverage.
He added that the initiative would increase enrollment under the Lagos State Health Management Agency’s Ilera-Eko health insurance scheme and strengthen healthcare financing for infrastructure development and vulnerable groups.
Abayomi disclosed that over 1.46 million residents had enrolled under the scheme but noted that Lagos still had a long way to go in achieving universal health coverage.
He described Nigeria’s healthcare financing structure as unsustainable, lamenting that about 77 per cent of healthcare spending was currently funded directly by citizens, while insurance accounted for only two per cent.
The commissioner said the state’s 2052 Development Plan was designed to position Lagos among the top three healthcare destinations in Africa within the next decade.
According to him, the plan focuses on universal health coverage, reduction of maternal mortality, strengthening primary healthcare, improving child nutrition and reversing medical tourism.
“We do not want Lagosians travelling abroad to seek healthcare in Dubai, London, India or South Africa. We want to provide every specialty and subspecialty needed right here in Lagos,” he said.
Abayomi also stressed the need to regulate and integrate informal healthcare providers, including community pharmacies, patent medicine vendors and traditional medicine practitioners, into the healthcare system.
He disclosed that over 3,500 registered private health facilities currently operate in Lagos alongside numerous informal providers serving as first points of care for residents.
On workforce development, the commissioner acknowledged the impact of migration on Nigeria’s health sector but said Lagos was introducing improved welfare packages and expanded training opportunities to retain professionals.
He announced approval for the establishment of a standalone University of Medicine and Health Sciences in Lagos to increase the production of doctors, nurses, pharmacists and other healthcare workers.
Special Adviser to the Governor on Health, Kemi Ogunyemi, said the Health Facility Monitoring and Accreditation Agency remained central to regulating healthcare standards and ensuring patient safety across the state.
She urged residents to avoid using facilities without HEFAMAA accreditation signs and to report cases of substandard medical practice.
Permanent Secretary, Lagos State Ministry of Health, Dayo Lajide, commended healthcare workers across the state for their resilience and commitment despite increasing pressure on health facilities.