The Lagos State Government on Tuesday unveiled sweeping healthcare reforms that could make health insurance compulsory for residents seeking government services, as authorities battle a staggering N100 billion funding shortfall threatening the state's healthcare system.
The State Commissioner for Health, Prof. Akin Abayomi, disclosed that Ministries, Departments and Agencies, MDAs, have commenced implementation measures requiring residents to show proof of accredited health insurance before accessing certain government services.
The move followed Governor Babajide Sanwo-Olu's Executive Order domesticating the National Health Insurance Authority Act and making health insurance mandatory for all Lagos residents.
Speaking at the 2026 Ministerial Press Briefing marking the seventh anniversary of the Sanwo-Olu administration. Abayomi said the state could no longer sustain what he described as Nigeria's "cash-and-carry" healthcare system where citizens pay directly for treatment from their pockets.
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"We cannot continue with a situation where people pay out-of-pocket each time they fall sick. That model is unsustainable," he said.
Abayomi revealed that Lagos currently spends only about eight per cent of its budget on healthcare, far below the 15 per cent benchmark recommended under the Abuja Declaration.
According to him, the shortfall has created a huge gap between available funding and the healthcare needs of the state's rapidly growing population.
"There is at least a N100 billion gap between what we currently have and what we ideally require to provide quality healthcare services for Lagosians," he said.
The Commissioner identified mandatory health insurance and public-private partnerships as the two major pillars of the state's new healthcare financing strategy.
He lamented that nearly 77 per cent of healthcare spending in Nigeria still comes directly from citizens' pockets, while only about two per cent is financed through insurance coverage.
"That arrangement is abnormal. Health insurance is a solidarity mechanism where the healthy support the sick and the rich support the poor," Abayomi added.
He disclosed that over 1.46 million residents had already enrolled under the Lagos State Health Management Agency's Ilera-Eko health insurance scheme, but admitted that the state still remained far from achieving universal health coverage.
Beyond healthcare financing, the state government, he disclosed also plans to transform Lagos into one of Africa's leading medical destinations within the next decade.
Abayomi said the government was determined to reverse the growing trend of Nigerians travelling abroad for medical treatment by expanding specialist healthcare services and modernising health infrastructure across the state.
"We do not want Lagosians travelling to Dubai, London, India or South Africa for healthcare. We want every specialty and subspecialty available right here in Lagos," he said.
The Commissioner also acknowledged the worsening brain drain crisis in the health sector, warning that migration of healthcare professionals had continued to weaken service delivery across the country.
To address the challenge, he announced government approval for the establishment of a standalone University of Medicine and Health Sciences aimed at increasing the production of doctors, nurses, pharmacists and other healthcare professionals.
According to him, the proposed institution would decentralise clinical training across public and private hospitals while leveraging diaspora expertise to strengthen healthcare delivery in Lagos.
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Abayomi further disclosed that the state was moving to formally integrate community pharmacies, patent medicine vendors and traditional medicine practitioners into the broader healthcare system, noting that many residents rely on informal providers as their first point of care.
He said Lagos currently has over 3,500 registered private health facilities operating alongside numerous informal healthcare providers.
Also speaking, the Special Adviser to the Governor on Health, Dr. Kemi Ogunyemi, warned residents against patronising unaccredited hospitals and cosmetic medical spas.
"If you do not see the HEFAMAA accreditation sign in a facility, please do not use that facility," she warned.
Ogunyemi noted that Lagos remained the first state in Nigeria to establish a dedicated healthcare facility monitoring and accreditation agency, adding that several states and the Federal Government were now studying the Lagos model.
