By Ayomide Otitoju
Lagos State on Tuesday unveiled the Lagos Private Health Partnership (LPHP), a major reform initiative aimed at restructuring health financing, expanding insurance coverage, and ensuring equitable access to quality healthcare through a unified public–private framework. The launch, held at the Civic Centre, Victoria Island, brought together government officials, healthcare regulators, insurers, development partners, and financial institutions, all affirming commitment to sustainable health financing and universal health coverage.
Delivering the keynote on behalf of Governor Babajide Sanwo-Olu, Secretary to the State Government Barrister Abimbola Salu-Hundeyin described LPHP as a historic step toward building a resilient, future-driven health financing architecture capable of protecting households from catastrophic healthcare costs. She noted the initiative demonstrates Lagos’ determination to implement compulsory health insurance mandates effectively.
Governor Sanwo-Olu explained that LPHP stems from Lagos’ domestication of the National Health Insurance Authority (NHIA) Act of 2022 through an Executive Order in July 2024, making health insurance mandatory for all residents. A multi-stakeholder Technical Working Group developed operational guidelines and the LPHP framework to align private sector participation with policy direction, risk pooling, and digital accountability.
The reform is expected to strengthen private health service delivery—which accounts for over 70 percent of healthcare encounters in Lagos—while allowing insurers and providers to operate within a framework balancing profitability, service quality, and equity. The Governor added that the state has adopted a population-based enrolment model for employees of private organisations to streamline risk distribution and subsidised plan access.
Health Commissioner Prof. Akin Abayomi said the LPHP marks a decisive break from a fragmented, inefficient private health insurance market characterised by price undercutting, enrollee restrictions, and loss of trust. He explained that LPHP restores fairness, transparency, quality, and sustainability through a collaborative digital procurement platform covering enrolment, provider selection, fund flow, claims management, monitoring, reporting, and evaluation.
Abayomi noted that full enforcement of mandatory health insurance will follow a six-month sensitisation period, emphasising that widespread enrolment is critical to creating a functional, people-centred insurance ecosystem. He added that the initiative includes a state-managed risk equalisation and solidarity fund, with private insurers contributing 13 percent of premiums to protect vulnerable populations, enhance emergency response, and support universal health coverage. Lagos could generate over ₦400 billion annually if 20 million residents enrol at an average premium of ₦20,000.
LASHMA Chairman Dr. Adebayo Adedewe described LPHP as a credible solution to long-standing challenges in the health insurance space, while Dr. Jimi Arigbabuwo, National Adviser on Health Insurance Matters for HCPAN, highlighted its importance in integrating private providers who deliver most of Nigeria’s healthcare services.
Sterling Bank CEO Abubakar Suleiman pledged continued financial and technological support for the LPHP, emphasising Lagos’ pioneering model of a unified, digitally governed marketplace that promotes transparency, real-time accountability, and value-based healthcare delivery.
Stakeholders agreed that LPHP represents one of Nigeria’s most comprehensive health financing reforms and could serve as a scalable model nationwide. Lagos State now positions itself as a leading hub for health financing reform, medical investments, health technology, and workforce retention. The Ministry of Health said next steps include HMO onboarding, pilot implementation, system review, and full statewide rollout.
The launch concluded with a call to action for residents, private sector employers, insurers, healthcare providers, and civil society groups to commit to ensuring affordable, digitised, and universal health access for all Lagos residents.
