Lagos Woos Private Sector Investors to Boost Healthcare, Says Commissioner Abayomi
Lagos Commissioner Calls for Enhanced Private Sector Investment in Healthcare
LAGOS, Nigeria — Prof. Akin Abayomi, the Lagos State Commissioner for Health, has emphasized the need for increased investment and collaboration from the private sector to establish a sustainable healthcare system that meets the needs of a rapidly growing population.
Abayomi delivered his remarks during a presentation at the Lagos Chamber of Commerce and Industry (LCCI) Medical, Pharmaceuticals, and Allied Services Group Symposium. Following his address, he made a statement on social media platform X, outlining the government’s approach to developing a robust health economy.
During his presentation, Abayomi noted that public funding alone is inadequate for addressing the healthcare demands of Lagos, a city housing approximately 30 million residents. “Lagos cannot build the healthcare system for a 30-million-person city with government funding alone. This highlights the need for stronger collaboration between the government and the private sector,” he stated.
He encouraged private investment not only in hospitals but also in a range of healthcare sectors including infrastructure, specialized medical facilities, diagnostics, pharmaceuticals, medical manufacturing, health technology, and research initiatives.
To facilitate this investment, Abayomi announced the establishment of the Lagos State Medical Infrastructure Investment Zone (LASMIIZO), which aims to create opportunities for private sector engagement in various healthcare areas. “Through LASMIIZO, we are creating space for private investment across healthcare infrastructure, specialist hospitals, diagnostics, and more,” he explained.
Abayomi acknowledged that attracting private investment will necessitate more than just incentives; a stable and predictable operating environment is essential for investors. “Private sector growth requires a predictable environment,” he emphasized.
He outlined a shift in government strategy from short-term financial supports towards sustainable investment models that include risk-sharing, co-investment, public-private partnerships, and other long-term strategies. “We are moving from ad hoc subsidies towards performance-based contracts and structured demand,” he said.
The commissioner described the government’s role as encompassing policy direction, regulation, infrastructure support, and equity, while the private sector is expected to contribute capital, technology, and innovations.
In discussing healthcare financing, Abayomi highlighted the importance of enhancing purchasing power amidst the dominance of private healthcare providers and significant out-of-pocket expenses for patients. He noted, “With more than 70% of healthcare provided by the private sector and over 70% of spending occurring out of pocket, a sustainable healthcare market requires purchasing power.”
Abayomi identified health insurance as a pivotal aspect of the state’s healthcare strategy, asserting that increased private sector involvement does not equate to government neglecting its responsibilities. “This is not about government withdrawing from healthcare. It is about creating the conditions for responsible private investment to flourish while protecting the public interest,” he stated.
The commissioner urged investors and innovators to join forces with the state to enhance healthcare capacity and develop effective solutions tailored for Lagos, Nigeria, and the broader African market. “Build with us. Build specialist capacity. Manufacture medical products. Develop digital health solutions. Invest in research and clinical trials,” he concluded.
