Lagos Makes Health Insurance Compulsory: What Residents Must Do Before December 31

Lagos residents have until December 31, 2026, to obtain health insurance before the state government begins enforcing mandatory coverage on January 1, 2027.

Governor Babajide Sanwo-Olu announced the deadline on Tuesday while launching the enforcement of Executive Order EO/BOS/01 of 2024.

The policy requires residents, workers and employers to take responsibility for health insurance coverage. The government says it wants to reduce the financial pressure medical bills place on households.

However, residents must first understand which insurance options are available, how the plans differ and what the government expects from employers.

Which health insurance plan can residents use?

The Lagos State Government has highlighted two main options: the existing Ilera Eko scheme and the newly introduced Lagos Private Health Plans.

Ilera Eko caters to vulnerable residents and people working in the informal sector. The new private plans target salaried workers and corporate organisations.

The government says the two arrangements will work together to expand coverage across the state. It also disclosed that 21 health maintenance organisations had agreed to participate in the new plans.

Residents can contact the Lagos State Health Management Agency for information about enrolment and available options.

Before signing up, applicants should check the premium, covered treatments, participating hospitals and conditions for accessing care. The announcement did not provide a detailed price list for the new private plans.

What employers and workers need to know

The policy also places responsibilities on employers.

Sanwo-Olu said companies should treat workers’ healthcare as a necessary business expense, just like pensions and other employment obligations.

Consequently, salaried workers should ask their employers how they intend to provide the required coverage. Employers, meanwhile, should seek guidance from the relevant state agency on their obligations under the executive order.

The government has not yet specified the penalties that could apply to employers or residents who fail to comply by the deadline.

What happens from January 1, 2027?

Enforcement is scheduled to begin on January 1, 2027. However, the announcement did not explain how officials will check compliance or what sanctions they may impose.

Residents should therefore follow updates from the state government for further details rather than assume that a particular penalty will apply.

The government has also stressed that hospitals must not refuse emergency patients because they cannot immediately pay or prove insurance coverage. Patients requiring emergency care must first be stabilised before payment or insurance issues are addressed.

Lagos increases funding for vulnerable residents

To support people who cannot afford insurance premiums, the state has increased its Health Equity Fund from ₦1 billion to ₦3 billion.

Lagos State Health Management Agency chairman, Dr Adebayo Adedewe, said the fund would help provide coverage for more than 500,000 vulnerable residents.

The agency also plans to expand enrolment through community outreach, radio campaigns and partnerships with traditional rulers, market associations and transport unions.

The increased funding is intended to help low-income residents access healthcare as the state expands mandatory coverage.

For now, residents should identify a suitable plan and establish how to enrol before December 31. The government’s next task will be to clarify the enforcement process and ensure that affordable coverage translates into access to treatment.