Lagos makes health insurance mandatory from 2027

…Gives residents until December 31 to obtain coverage

By Olasunkanmi Akoni

Lagos State Governor, Babajide Sanwo-Olu, has commenced enforcement of mandatory social health insurance in the state, directing residents, employers and workers to obtain health insurance coverage before the end of 2026.

Sanwo-Olu, who announced this on Wednesday, said enforcement under Executive Order EO/BOS/01 of 2024 would commence on January 1, 2027, giving residents until December 31, 2026, to secure coverage.

The governor also unveiled the Lagos Private Health Plans (LPHP), designed to extend health insurance to salaried workers and corporate organisations, complementing the existing Ilera Eko scheme, which caters to vulnerable residents and people in the informal sector.

He also inaugurated two boards to support the implementation of the initiative.

Speaking at an event in Victoria Island, Lagos, themed “Lagos Covered, a Shared Commitment, a Healthier Lagos,” Sanwo-Olu said the objective of the executive order went beyond enforcement to ensuring that every resident could access quality healthcare without suffering financial hardship.

He said the policy placed responsibilities on individuals, employers and the government, stressing that health insurance was necessary to improve access to healthcare and protect households from the financial burden of medical treatment.

The governor said employers must regard workers’ healthcare as a necessary cost of doing business, just as they made provisions for pensions and other employment-related obligations.

He explained that while Ilera Eko focused on vulnerable residents and the informal sector, the new private health plans would cater to salaried workers and employers, ensuring that different categories of residents could access appropriate healthcare packages.

Sanwo-Olu also stressed that healthcare providers must not turn away patients requiring emergency medical attention because of financial constraints.

He said patients must first be stabilised before issues concerning payment or insurance coverage were addressed.

The governor disclosed that 21 health maintenance organisations had endorsed participation in the new plans, describing the initiative as a partnership between the state government and private operators to expand coverage and strengthen healthcare delivery.

He also urged medical professionals considering emigration to reconsider, arguing that improved healthcare financing could make the sector more sustainable for practitioners.

Also speaking, the Lagos State Commissioner for Health, Prof. Akin Abayomi, said advances in medical technology, including artificial intelligence, robotic science and modern diagnostic equipment, had significantly increased the cost of healthcare delivery.

He stressed the need for a strong and inclusive health insurance system to protect residents from rising medical expenses while ensuring access to quality services.

Abayomi described the initiative as a major shift in healthcare financing in Lagos, arguing that the existing dependence on out-of-pocket payments placed excessive financial pressure on households and healthcare facilities.

Earlier, the Chairman of the Lagos State Health Management Agency (LASHMA), Dr. Adebayo Adedewe, said the state government had increased its Health Equity Fund from ₦1 billion to ₦3 billion to provide health insurance coverage for more than 500,000 vulnerable residents who could not afford the required premiums.

Adedewe said LASHMA would continue to expand enrolment, strengthen public awareness and ensure that the policy translated into accessible healthcare for residents.

He added that the agency had intensified community engagement through radio campaigns, billboards, digital advocacy and partnerships with traditional rulers, market associations, transport unions and other grassroots organisations.