Lagos targets N100bn Health Funding Gap with fresh Reforms

The Lagos State Government has unveiled a new wave of healthcare financing, workforce and infrastructure reforms aimed at closing a projected N100 billion funding gap in the health sector and positioning the state as one of Africa’s leading healthcare destinations.

Speaking during the 2026 Ministerial Press Briefing held at the Bagauda Kaltho Press Centre in Alausa, Ikeja, the Commissioner for Health, Prof. Akin Abayomi, said mandatory health insurance and stronger public-private partnerships would remain central to the state’s healthcare transformation agenda.

According to Abayomi, Lagos currently allocates about eight per cent of its budget to healthcare, far below the 15 per cent benchmark recommended under the Abuja Declaration, creating a significant financing shortfall.

“There is a gap of at least N100 billion between what we currently have and what we ideally need to provide quality healthcare services,” he said.

The Commissioner explained that declining donor support, rising healthcare demands and Lagos’ rapidly growing population had made alternative financing mechanisms inevitable.

He disclosed that Governor Babajide Sanwo-Olu had already domesticated the National Health Insurance Authority Act through an Executive Order signed on July 16, 2024, making health insurance compulsory for all Lagos residents.

Abayomi said Ministries, Departments and Agencies had begun implementing measures requiring residents seeking government services to provide evidence of accredited health insurance coverage.

The Commissioner revealed that more than 1.46 million Lagos residents had so far enrolled under the Ilera-Eko health insurance scheme, although he admitted that universal health coverage remained a long-term target.

He described Nigeria’s current healthcare financing structure as unsustainable, noting that about 77 per cent of healthcare spending still comes directly from citizens’ pockets, while only two per cent is funded through insurance coverage.

Abayomi further outlined the state’s broader healthcare vision under the Lagos 2052 Development Plan, which seeks to transform Lagos into a model mega city and rank it among Africa’s top three healthcare destinations within the next decade.

According to him, the state plans to reverse outbound medical tourism by expanding specialised healthcare services locally.

“We do not want Lagosians travelling abroad for treatment in Dubai, London, India or South Africa. We want to provide every specialty and subspecialty right here in Lagos,” he stated.

To tackle manpower shortages and the growing migration of health professionals, the Commissioner announced plans for a standalone University of Medicine and Health Sciences in Lagos State to increase the production of doctors, nurses, pharmacists and other healthcare workers.

Abayomi also disclosed that Lagos was strengthening collaboration between public hospitals, private healthcare providers and informal medical practitioners as part of efforts to improve healthcare delivery across the state.

Meanwhile, the Special Adviser to the Governor on Health, Dr. Kemi Ogunyemi, urged residents to patronise only healthcare facilities accredited by the Health Facility Monitoring and Accreditation Agency (HEFAMAA), warning against the dangers of substandard medical practice.

The briefing formed part of activities commemorating the seventh year of the Sanwo-Olu administration.