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Sanwo-Olu Unveils Health Reforms to Bridge N100bn Funding Gap

by News Break
May 15, 2026
in Politics
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Ayodeji Ake

T The Lagos State Government has unveiled sweeping healthcare financing, workforce,  and infrastructure reforms aimed at expanding health insurance coverage, improving service delivery, and positioning Lagos as a leading healthcare destination in Africa.

Speaking during the 2026 Ministerial Press Briefing held at the Bagauda Kaltho Press Centre in Alausa, Ikeja, the state Commissioner for Health, Prof. Akin Abayomi, disclosed that the state was intensifying efforts to close an estimated N100 billion gap between existing healthcare funding and the resources required to meet the demands of Lagos residents.

The briefing was part of activities marking the seventh anniversary of the administration of Governor Babajide Sanwo-Olu and Deputy Governor Obafemi Hamzat.

Abayomi explained that Lagos currently allocates about eight per cent of its annual budget to healthcare, far below the 15 per cent benchmark recommended under the Abuja Declaration. He said the shortfall, coupled with increasing healthcare demands in a rapidly growing megacity, had made alternative funding sources inevitable.

According to him, the state government has identified mandatory health insurance and stronger public-private partnerships as the major solutions to ensuring sustainable healthcare financing.

“There is a gap between what is available to us through our budget and what we ideally want to spend.” 

“The difference is at least N100 billion. The answer for us is health insurance and public-private partnerships,” Abayomi stated.

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

The commissioner said Ministries, Departments, and Agencies (MDA) across the state had begun implementing measures requiring residents seeking government services to provide proof of accredited health insurance coverage.

Abayomi noted that the move would significantly increase enrollment in health insurance schemes and provide a sustainable pool of funds for healthcare infrastructure, medical services, and support for vulnerable groups.

Describing health insurance as a collective social responsibility, he said: “Health insurance is the umbrella through which the healthy take care of the sick and the rich support the poor.”

He disclosed that more than 1.46 million Lagos residents had already enrolled in the Lagos State Health Management Agency’s Ilera-Eko health insurance scheme, although the state was still far from achieving universal health coverage.

The commissioner also lamented Nigeria’s overdependence on out-of-pocket healthcare spending, revealing that about 77 per cent of healthcare expenses are paid directly by citizens while only two per cent comes through insurance coverage.

On the state’s long-term vision, Abayomi said the Lagos Development Plan 2052 seeks to transform Lagos into one of Africa’s top three healthcare destinations within the next decade.

He said the government was focused on reducing maternal mortality, strengthening primary healthcare, improving child nutrition, and reversing outbound medical tourism.

“We do not want Lagosians travelling abroad to seek medical care in Dubai, London, India, or South Africa. We want every specialty and subspecialty available right here in Lagos,” he said.

Abayomi further stressed the need to regulate and integrate informal healthcare providers, including patent medicine vendors, traditional medicine practitioners, and community pharmacies, into the broader healthcare system.

According to him, healthcare delivery in Lagos extends beyond public hospitals, with over 3,500 registered private healthcare facilities currently operating across the state.

The commissioner also announced the approval for a standalone University of Medicine and Health Sciences in Lagos to boost the production of doctors, nurses, pharmacists, and other medical professionals amid rising global migration of healthcare workers.

He said the institution would decentralise clinical training and leverage both local and diaspora specialists to strengthen healthcare manpower in the state.

Also speaking, the Special Adviser to the Governor on Health, Dr. Kemi Ogunyemi, highlighted the role of the Health Facility Monitoring and Accreditation Agency (HEFAMAA) in ensuring patient safety and regulating standards across healthcare facilities in Lagos.

She urged residents to avoid unaccredited facilities and report cases of substandard medical practices to relevant authorities.

In his closing remarks, the Permanent Secretary of the Lagos State Ministry of Health, Dr. Dayo Lajide, commended healthcare workers across the state for their resilience and dedication despite growing pressure on the health sector.

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