Lagos moves to bridge N100bn healthcare funding gap
By Imisioluwa Afunmiso
The Lagos State Government has pledged its commitment to bridging the N100 billion healthcare funding gap for health insurance.
Speaking during the 2026 Ministerial Press Briefing held at the Bagauda Kaltho Press Centre, Alausa-Ikeja, the Commissioner for Health, Akin Abayomi, said the state was repositioning its healthcare sector through improved financing, infrastructure expansion and workforce development.
The briefing formed part of activities marking the seventh anniversary of the administration of Governor Babajide Sanwo-Olu and Deputy Governor Kadri Obafemi Hamzat.
Abayomi disclosed that the state currently allocates about eight per cent of its budget to healthcare, below the 15 per cent target recommended under the Abuja Declaration, stressing that alternative financing mechanisms had become necessary to sustain healthcare delivery in the state.
According to him, the State faces a funding deficit of about N100 billion between available healthcare funding and projected healthcare expenditure.
“The answer for us really is two things; health insurance and public-private partnership. This is where we are focused at the moment in Lagos State,” he said.
The Commissioner noted that Governor Sanwo-Olu had signed an Executive Order domesticating the National Health Insurance Authority Act on July 16, 2024, making health insurance mandatory for residents of Lagos State.
He explained that Ministries, Departments and Agencies had already begun implementing enforcement measures requiring residents seeking government services to provide evidence of accredited health insurance coverage.
Abayomi said the policy was expected to increase enrollment into the Lagos State Health Management Agency’s Ilera-Eko scheme and create a sustainable healthcare financing pool capable of improving infrastructure and supporting vulnerable residents.
He revealed that more than 1.46 million Lagos residents had already enrolled under the scheme but acknowledged that the state still had significant work to do in achieving universal health coverage.
The commissioner lamented that about 77 per cent of healthcare expenditure in Nigeria was currently financed directly from citizens’ pockets, while only two per cent was funded through insurance, describing the situation as unsustainable.
Speaking on the state’s long-term healthcare strategy, Abayomi said Lagos was working towards becoming one of the top three healthcare destinations in Africa under its 2052 Development Plan.
He stated that the vision focuses on universal health coverage, reduction in maternal mortality, stronger primary healthcare delivery, improved child nutrition and reversing outbound 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 patent medicine vendors, community pharmacies and traditional medicine practitioners, into the state’s broader healthcare system.
According to him, over 3,500 registered private health facilities currently operate across Lagos alongside informal healthcare providers that often serve as first points of care for residents.
On healthcare workforce development, the commissioner acknowledged the impact of migration on Nigeria’s medical personnel but disclosed that Lagos State had secured approval for the establishment of a standalone University of Medicine and Health Sciences to boost the training of doctors, nurses, pharmacists and other healthcare professionals.
He added that the proposed institution would decentralize clinical training across public and private healthcare facilities while leveraging diaspora expertise and existing professionals within the state health system.
Special Adviser to the Governor on Health, Kemi Ogunyemi, highlighted the role of the Health Facility Monitoring and Accreditation Agency in ensuring patient safety and regulating healthcare standards across the state.
She urged residents to patronise only accredited health facilities and report cases of poor or substandard healthcare practices to relevant authorities.
Commenting also, the Ministry’s Permanent Secretary, Lagos State Ministry of Health, Dayo Lajide, commended healthcare workers across the state for their resilience and commitment to quality healthcare delivery despite increasing pressure on the health sector.