Lagos Woos Private Sector Investors to Boost Healthcare, Says Commissioner Abayomi

Lagos State Commissioner for Health, Prof. Akin Abayomi, has called for stronger private-sector investment and collaboration to build a sustainable healthcare system capable of serving the state’s growing population.

Abayomi made the call in a post on X following his address at the Lagos Chamber of Commerce and Industry (LCCI) Medical, Pharmaceuticals and Allied Services Group Symposium, where he outlined the state government’s strategy for developing a sustainable health economy.

He said government funding alone would not be sufficient to build a healthcare system capable of serving Lagos, which has a population of about 30 million people.

“Lagos cannot build the healthcare system for a 30-million-person city with government funding alone. That is not a weakness. It is a reason to build stronger collaboration between government and the private sector,” he said.

According to the commissioner, the investment opportunity extends beyond hospitals to include healthcare infrastructure, specialist hospitals, diagnostics, pharmaceuticals, medical manufacturing, pharmacy, health technology, digital health, research and clinical trials.

He said the Lagos State Medical Infrastructure Investment Zone (LASMIIZO) was being developed to create opportunities for private investment across these areas.

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“Through LASMIIZO, we are creating space for private investment across healthcare infrastructure, specialist hospitals, diagnostics, pharmaceuticals and medical manufacturing, pharmacy, health technology, digital health, research and clinical trials, medical education, energy and healthcare supply chains,” Abayomi said.

The commissioner stressed that attracting private-sector investment would require more than incentives, noting that investors needed a predictable operating environment to commit capital to the sector.

“But private sector growth requires more than incentives. It requires a predictable environment,” he said.

Abayomi said Lagos was moving away from reliance on ad hoc subsidies, tax holidays and short-term projects towards long-term financing and partnership models that would promote sustainable investment.

“We are moving from ad hoc subsidies, tax holidays and short term projects towards risk sharing, co investment, long term PPPs, concessional financing, performance based contracts and structured demand,” he said.

He explained that the government’s role would include providing policy direction, regulation, standards, infrastructure and equity, while the private sector would contribute capital, technology, expertise and innovation.

“Government will provide policy, regulation, standards, infrastructure and equity. The private sector will bring capital, technology, expertise and innovation,” the commissioner said.

Abayomi also identified healthcare financing as a major component of the strategy, noting that the dominance of private healthcare providers and high out-of-pocket spending made increased purchasing power critical to the sustainability of the sector.

“And we must fix demand. With more than 70% of healthcare provided by the private sector and more than 70% of health spending paid out of pocket, a sustainable healthcare market requires purchasing power,” he said.

He therefore described health insurance as central to the state’s healthcare strategy, stressing that greater private-sector participation would not amount to government abandoning its responsibility to the sector.

“Health insurance is therefore central to the strategy. This is not government withdrawing from healthcare. It is government creating the conditions for responsible private investment to flourish while protecting the public interest,” he said.

The commissioner urged investors and innovators to partner with the state in expanding healthcare capacity and developing solutions that could serve Lagos, Nigeria and the wider African market.

“The message to investors and innovators is simple: Build with us. Build specialist capacity. Build diagnostic networks. Manufacture medicines and medical products. Develop digital health solutions. Invest in research and clinical trials. Train our health professionals. Create solutions for Lagos, Nigeria and Africa,” Abayomi said.