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By Doris Obinna
The Lagos State Government has launched a sweeping overhaul of its health financing system with the introduction of the Lagos Private Health Partnership (LPHP), a unified public–private framework aimed at expanding insurance coverage, strengthening regulation and ensuring equitable access to quality healthcare.
The unveiling, held at the Civic Centre, Victoria Island, on Tuesday, brought together government officials, private insurers, healthcare providers, development partners and financial institutions, all pledging support for what is being described as one of Nigeria’s most comprehensive health financing reforms.
Speaking on behalf of the Governor, Babajide Sanwo-Olu, Secretary to the State Government, Barrister Abimbola Salu-Hundeyin, said the LPHP marks a historic step toward building a resilient health financing structure capable of protecting residents from catastrophic medical costs.
She noted that the reform stems from Lagos’ implementation of the National Health Insurance Authority Act through a 2024 Executive Order mandating insurance for all residents and creating enforcement mechanisms to ensure compliance.
Sanwo-Olu explained that the LPHP was developed by a multi-stakeholder technical group to align private-sector participation with policy direction, risk pooling and digital accountability. The framework, he said, is expected to strengthen the private sector, which currently handles more than 70 per cent of healthcare encounters in the state. He also announced the adoption of a population-based enrolment model for private-sector employees to improve risk distribution and expand access to subsidised plans.
On his part, Commissioner for Health, Prof. Akin Abayomi, said the initiative ends years of fragmentation, unhealthy pricing practices and declining trust in the private insurance market. He described the LPHP as a digitally driven marketplace designed to standardise service quality, shift competition from pricing wars to value-based outcomes and enhance transparency across the system.
He warned that without widespread enrolment, Lagos cannot achieve an effective insurance ecosystem, and noted that full enforcement will begin after a six-month sensitisation period.
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Abayomi also disclosed that the reform introduces a state-managed risk equalisation and solidarity fund requiring private insurers to contribute 13 per cent of premiums to support vulnerable groups and emergency response. He projected that Lagos could generate more than N400 billion annually for health financing if 20 million residents enrol at an average premium of N20,000.
Stakeholders, including the Lagos State Health Management Agency, the Healthcare Providers Association of Nigeria and Sterling Bank, praised the initiative as timely and transformative. They said it provides clearer market rules, fairer compensation structures, stronger digital oversight and a model that could be adopted nationally.
In his goodwill message, Chairman, Lagos State Health Management Agency, Dr. Adebayo Adedewe, hailed the LPHP as a long-awaited solution to persistent problems in the insurance market and commended the state for a consultative and technically robust design process.
Also, National Adviser on Health Insurance to the Healthcare Providers Association of Nigeria, Dr. Jimi Arigbabuwo, described the launch as a turning point for adequately integrating private providers who deliver most of the country’s healthcare services. He urged government to ensure fair provider compensation to discourage medical tourism and maintain service quality.
Sterling Bank’s CEO, Abubakar Suleiman, described the platform as pioneering for Africa, citing its integration of digital governance and real-time transparency.
The Ministry of Health said the next steps include HMO onboarding, pilot implementation and full statewide rollout. The event concluded with a call to residents, employers, civil society groups, insurers and providers to work together to achieve affordable, digitised and universal health coverage for all Lagosians.
