UHC: Lagos unveils new health financing reforms, LPHP

…Reform will strengthen insurance access, private sector participation, others – SANWO-OLU

… LPHP ends distrust, unhealthy pricing – Prof. Abayomi

By Chioma Obinna

To drive Universal Health Coverage, UHC, the Lagos State Government on Tuesday launched one of its most consequential health financing reforms in years with the unveiling of the Lagos Private Health Partnership, LPHP, a unified public–private framework designed to restructure health financing, expand insurance coverage, and ensure equitable access to quality healthcare.

The initiative, presented at an event attended by top government officials, regulators, insurers, development partners, and financial institutions, was positioned as a turning point for universal health coverage in the state.

Speaking, the Lagos State Governor, Mr. Babajide Sanwo-Olu, called the reform a decisive leap toward a resilient health financing structure capable of protecting households from catastrophic health spending. Represented by the Secretary to the State Government, Abimbola Salu-Hundeyin, he said: “The LPHP demonstrates Lagos’ seriousness in converting mandatory health insurance into practical and scalable outcomes.

“The initiative directly stems from Lagos’ implementation of the NHIA Act of 2022, following an Executive Order in 2024 that made health insurance compulsory for all residents and established enforcement mechanisms.”

The Governor said the LPHP emerged after a multi-stakeholder Technical Working Group recommended operational guidelines to align private sector participation with state policy, risk pooling, and digital accountability.

“The reform is expected to strengthen the private health sector, which delivers more than 70 percent of healthcare encounters in Lagos, while giving insurers and providers a clear, predictable framework that balances business sustainability with equity.”

He also announced the state’s adoption of a population-based enrolment model for private-sector employees to improve risk distribution and access to subsidised plans.

Speaking, the State Commissioner for Health, Prof Akin Abayomi, said the launch marks a decisive end to a fragmented and mistrusted insurance marketplace where unhealthy pricing, opaque operations, and enrollee dissatisfaction had eroded confidence.

He said the LPHP was engineered to rebuild trust and sustainability through fair pricing, transparent procurement, and stronger delivery standards.

Abayomi warned that despite Lagos’ population of over 25 million and strong economic profile, “health financing remains inadequate, insurance penetration remains low, and medical tourism continues to drain both confidence and capital.”

He described the LPHP as the strongest lever yet to reverse these trends and improve health outcomes. He also disclosed that the platform is underpinned by a digital marketplace covering enrolment, provider selection, claims, monitoring, reporting, and evaluation.

“This systemwill shift competition from price undercutting to value-driven outcomes and standardised service quality. The full enforcement of mandatory health insurance will begin after a six-month sensitisation period, in line with the Governor’s directive to expand risk pooling and financial protection.

He stressed that without broad enrolment, the state cannot build a functional insurance ecosystem capable of delivering equitable and people-centred care.”

During his technical presentation, Abayomi outlined LPHP’s plan for a state-managed risk equalisation and solidarity fund that will require private insurers to contribute 13 percent of premiums. The fund is designed to shield vulnerable groups, strengthen emergency response, and support universal health coverage.

He projected that if 20 million Lagos residents enrol at an average annual premium of ₦20,000, more than ₦400 billion could flow into the healthcare financing system each year.

Chairman of the Lagos State Health Management Agency (LASHMA), Adebayo Adedewe, described the LPHP as a credible solution to systemic failures in the insurance space. He commended the state’s extensive technical and stakeholder consultations and pledged full alignment with the reform, calling it a watershed moment in Lagos’ health financing evolution.

National Adviser on Health Insurance Matters for the Healthcare Providers Association of Nigeria (HCPAN), Jimi Arigbabuwo, said the launch marks a turning point in recognising private healthcare providers who deliver the majority of services in Nigeria. He urged government to prioritise fair compensation to ensure sustainability, patient satisfaction, and reduced medical tourism.

The Managing Director of Sterling Bank, Abubakar Suleiman, said the bank’s support for LPHP aligns with its HEART agenda and is aimed at resolving structural weaknesses that make healthcare financing unaffordable. He said Lagos has set a pioneering model for Africa by creating a unified digital marketplace where transparency, integrated payments, and enrollee empowerment shape value-based care. He added that the bank’s collaboration involves not only financing but also digital infrastructure to guarantee real-time accountability.

Stakeholders at the event agreed that LPHP represents one of the most comprehensive health financing reforms in Nigeria and could serve as a national model. They stressed that success will depend on continuous multisector engagement, strong public awareness, and firm policy enforcement.

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