Only two million out of the estimated 30 million residents of Lagos State have voluntarily enrolled in health insurance schemes, leaving the vast majority without formal health insurance coverage.
The figure means that just one in every 15 residents of the state is currently enrolled in a health insurance programme.
The Lagos State Commissioner for Health, Prof. Akin Abayomi, disclosed this on Sunday while announcing the commencement of enforcement of compulsory health insurance in the state.
Abayomi explained that the low level of voluntary enrolment informed the state government’s decision to make health insurance compulsory, stressing that residents need financial protection against the rising cost of medical treatment.
According to him, health insurance allows people to contribute towards healthcare expenses before falling ill, rather than struggling to pay large hospital bills when they need medical attention.
He noted that increasing healthcare costs and declining purchasing power have made it difficult for many families to cope with unexpected medical emergencies.
The commissioner warned that a single hospital admission could wipe out a family’s savings if there is no insurance arrangement to cover the expenses.
He explained that health insurance operates through a system where premiums paid by enrolees are pooled together to spread the financial burden of healthcare across different categories of people.
Under the arrangement, wealthier residents support poorer households, healthy people contribute towards the treatment of sick individuals, while younger people help provide healthcare protection for older citizens.
Abayomi said the state could not achieve its health insurance objectives without significantly increasing the number of residents enrolled in the scheme.
He further explained that the Federal Government had made health insurance compulsory under the National Health Insurance Authority Act 2022, which requires Nigerians to have a state health insurance plan before accessing other health insurance arrangements.
Lagos State subsequently domesticated the policy through Executive Order EO/BOS/01, signed on July 16, 2024.
According to the commissioner, Governor Babajide Sanwo-Olu officially flagged off the enforcement of compulsory health insurance on October 27, 2026, alongside the introduction of the Lagos State Private Health Plans (LPHP).
Abayomi disclosed that the state currently operates two major health insurance arrangements designed to accommodate residents across different income groups and employment sectors.
He explained that the Ilera Eko scheme provides subsidised health insurance packages for people working in the informal sector and vulnerable residents who may struggle to afford medical expenses.
On the other hand, the Lagos State Private Health Plans are designed for residents in the formal sector who can afford unsubsidised health insurance packages.
The private health insurance scheme offers five categories of coverage: Bronze, Silver, Gold, Diamond and Platinum, with premiums determined through actuarial pricing.
The commissioner added that the Lagos State Government also provides billions of naira in equity funding to purchase health insurance packages for residents who cannot afford even the subsidised Ilera Eko plans.
He said the introduction of the private health plans would further strengthen the state’s insurance system through cross-subsidisation, ensuring that healthcare financing is shared among different income groups.
However, Abayomi disclosed that Governor Sanwo-Olu had approved a grace period for residents until December 31, 2026, before full enforcement of compulsory health insurance begins.
He added that a steering committee and an enforcement task force had been established to supervise the implementation of the policy, with further information and guidelines expected to be released to the public.
The commissioner said the initiative was expected to improve access to healthcare, strengthen the state’s health system and make the healthcare sector more attractive to investors.
He also expressed optimism that the policy would improve health indices, increase access to hospital beds, encourage medical professionals to remain in Nigeria and attract Nigerian doctors and other healthcare workers living abroad to return home.
Abayomi further stated that the reform could position Lagos State as a major medical tourism destination by improving healthcare services and expanding access to quality medical facilities.
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