The Lagos State Government has given employers, workers and residents until December 31, 2026, to obtain health insurance coverage ahead of the enforcement of its mandatory health insurance policy.
Governor Babajide Sanwo-Olu announced the deadline during the launch of the Lagos Private Health Plan (LPHP) Partnership at the Lagos Continental Hotel, Victoria Island, where 21 participating Health Maintenance Organisations (HMOs) were unveiled.
The initiative aims to expand health insurance coverage, reduce out-of-pocket medical expenses and ensure residents can access healthcare without being overwhelmed by treatment costs.
Sanwo-Olu said the policy was anchored on Executive Order EO/BOS/01/2024, signed on July 16, 2024, and would complement the existing Ilera Eko health insurance scheme.
He explained that while Ilera Eko primarily supports vulnerable residents and informal-sector workers, the new partnership provides structured insurance options for salaried employees, businesses and other formal-sector participants.
According to the governor, the LPHP was developed following an actuarial assessment of about two million claims and enrolment records.
He said the government had established an implementation steering committee and an enforcement task force to coordinate the programme and ensure compliance.
Sanwo-Olu urged employers and workers to use the grace period to register for suitable insurance packages, stressing that the government’s priority was to encourage participation rather than create unnecessary conflict.
“We want compliance, not unnecessary confrontation,” he said.
The governor added that the scheme would improve payments to healthcare providers, enhance service delivery and reduce pressure on public hospitals.
He also disclosed that part of the contributions would support the Lagos State Health Equity Fund and public healthcare infrastructure, helping vulnerable residents access medical services.
The Commissioner for Health, Prof. Akin Abayomi, described the initiative as a major shift in healthcare financing, noting that direct payments for medical services often expose families to financial hardship.
He said the policy would spread healthcare costs across a larger pool of contributors and protect households from exhausting their savings or falling into debt because of illness.
Abayomi said Lagos was targeting an increase in insured residents from approximately two million to at least 10 million.
The Special Adviser to the Governor on Health, Dr Kemi Ogunyemi, said the executive order provided the legal framework for compulsory health insurance and required public and private employers to provide coverage for their workers.
Other stakeholders called for transparent implementation, prompt reimbursement of healthcare providers and effective monitoring of participating HMOs.
The state government said enrolment would be facilitated through a digital platform, while operational guidelines would specify contribution requirements and minimum benefit packages.
The deadline for employers, workers and residents to secure appropriate health insurance coverage is December 31, 2026.
