The Lagos State Government has directed residents, employers and workers to obtain health insurance coverage by December 31, 2026, ahead of the enforcement of mandatory health insurance across the state from January 1, 2027.
Governor Babajide Sanwo-Olu announced the deadline on Tuesday during the launch of the Lagos Private Health Plans (LPHP), an initiative designed to extend health insurance coverage to salaried workers and corporate organisations.
Introduced under Executive Order EO/BOS/01/2024, the new scheme will complement the existing Ilera Eko programme, which provides subsidised healthcare coverage for vulnerable residents and people working in the informal sector.
Sanwo-Olu said the policy aims to reduce the financial burden of medical treatment and prevent families from falling into hardship when they need healthcare.
“Every resident, every employer, and every worker in Lagos is required to have social health insurance,” the governor said, noting that the executive order assigns responsibilities to individuals, employers and the government.
He explained that many households struggle to balance hospital bills with other essential expenses, including rent and school fees. Under the new arrangement, residents would be able to access medical care without paying the full cost of treatment out of pocket.
“When that mother walks into the hospital in Lagos State next year, she will show her card. She will receive care, and she will keep her money for her journey back home,” he said.
New plan targets formal sector workers
The governor said Ilera Eko would continue to serve vulnerable residents and those in the informal sector, while the Lagos Private Health Plans would cater to the formal workforce.
“Ilera Eko serves the informal sector and the vulnerable. The Lagos Private Health Plans will serve the formal sector. There is now a plan offered by the state for every Lagosian, be it formal, be it informal, be it vulnerable,” he said.
According to Sanwo-Olu, licensed actuaries reviewed nearly two million claims and enrolment records to determine the cost of providing insurance for formal-sector workers.
He added that 21 health maintenance organisations had endorsed participation in the new plans, describing the initiative as a partnership between the state government and private operators to expand coverage and improve healthcare delivery.
The government has granted a moratorium until December 31, 2026, to allow residents and employers to enrol before enforcement begins.
“I truly, truly want compliance. I don’t want a horse whip for anybody. I want people to go out there and let us have free compliance,” Sanwo-Olu said.
He also announced the establishment of an implementation steering committee and an enforcement task force to coordinate the rollout and ensure compliance.
Government to monitor HMOs and hospital payments
Sanwo-Olu said the state would monitor participating health maintenance organisations, particularly their speed of payment to hospitals, settlement of claims and delivery of treatments covered by insurance policies.
“At least 70 kobo of every naira of premium paid that you collect must be spent on care,” he said, adding that the government would publish monitoring results quarterly.
He said contributions from the private health plans would also support the Lagos State Health Equity Fund, which provides coverage for residents who cannot afford insurance premiums.
Other funds, he added, would help provide drugs, medical equipment and staffing for public health facilities.
The governor promised transparency in the management of contributions and timely payments to healthcare providers.
“Every hospital should be paid on time, every naira that enters the system should be accounted for in public,” he said.
He also appealed to Nigerian medical professionals who had moved abroad to consider returning, arguing that improved healthcare financing could make the sector more sustainable.
“We’re restoring dignity, viability, and credibility in the health sector,” he said.
Health officials highlight rising treatment costs
Lagos State Commissioner for Health, Prof. Akin Abayomi, said advances in medical technology, including artificial intelligence, robotics and modern diagnostic equipment, had increased the cost of healthcare delivery.
He stressed that an inclusive health insurance system was necessary to protect residents from rising medical expenses and improve access to quality treatment.
Abayomi described the launch as a significant shift in healthcare financing, noting that reliance on out-of-pocket payments placed pressure on households an healthcare facilities.
Earlier, the Chairman of the Lagos State Health Management Agency (LASHMA), Dr Adebayo Adedewe, said the state had increased its Health Equity Fund from ₦1 billion to ₦3 billion.
He said the fund was intended to provide insurance coverage for more than 500,000 vulnerable residents who could not afford the required premiums.
Adedewe added that LASHMA would continue to expand enrolment and public awareness through radio campaigns, billboards, digital advocacy and partnerships with traditional rulers, market associations, transport unions and other community organisations.
The state government says the new policy is intended to widen access to healthcare and reduce the financial pressure of medical bills. Residents and employers have until the end of 2026 to obtain coverage before mandatory enforcement begins.
