The Lagos State Government has increased its Health Equity Fund from N1 billion to N3 billion, targeting 500,000 vulnerable residents for subsidised healthcare as it expands mandatory health insurance coverage.

Governor Babajide Sanwo-Olu announced the initiative at the launch of the Lagos Private Health Plan (LPHP) Partnership, setting December 31, 2026, as the deadline for residents, employers and workers to secure health insurance before enforcement begins on January 1, 2027. The event also featured the unveiling of 21 participating Health Maintenance Organisations (HMOs).

Sanwo-Olu said the programme was anchored on Executive Order EO/BOS/01/2024, signed on July 16, 2024, which requires public and private employers to provide health insurance for their workers.

He explained that the existing IleraEko scheme primarily supports vulnerable populations and informal-sector workers, while the LPHP provides complementary options for salaried employees and corporate organisations. Actuarial analysis of about two million claims and enrolment records informed its development.

The governor said the initiative would improve healthcare financing, ensure more predictable payments to providers, ease pressure on public hospitals and generate contributions for the Health Equity Fund and public healthcare infrastructure.

Commissioner for Health, Prof. Akin Abayomi, said the scheme would reduce households’ dependence on out-of-pocket payments, which often expose families to financial hardship. He said Lagos was targeting an increase in insured residents from about two million to at least 10 million, adding that participating HMOs were accredited by the National Health Insurance Authority.

Special Adviser to the Governor on Health, Dr Kemi Ogunyemi, said the scheme would allow individuals and families to choose accredited plans suited to their needs. She urged employers, insurers and healthcare providers to collaborate in expanding coverage and improving service quality.

Chairman of the Governing Board of the Lagos State Health Management Agency, Dr Adebayo Adedewe, said the agency had intensified public sensitisation through media campaigns and engagements with community leaders, market associations and transport unions. He confirmed that the increased fund would target 500,000 vulnerable residents.

Permanent Secretary, Lagos State Ministry of Health, Dr Dayo Lajide, citing a National Health Insurance Authority report, said out-of-pocket payments accounted for 58 per cent of Nigeria’s total health expenditure in 2024, highlighting the need for financial protection against healthcare costs.

Permanent Secretary, Lagos State Health Management Agency, Dr Emmanuella Zamba, described the launch as a transition from policy development to implementation, urging stakeholders to ensure accessible and reliable coverage.

Representing Sterling Bank’s Managing Director and Chief Executive Officer, Abubakar Suleiman, the bank’s Vice President, Government Banking, Adewale Adebowale, said the bank was supporting the initiative as a technology and financial partner. Its digital platform would facilitate enrolment and help employers register workers.

President of the Healthcare Providers Association of Nigeria, Dr Aipoh Augustine, called for transparent implementation, prompt reimbursement, simplified payment procedures and fair accreditation of healthcare facilities.

He said the programme’s success should be measured not only by enrolment figures but also by residents’ ability to access appropriate treatment without financial hardship.