LAGOS SEEKS PRIVATE CAPITAL TO EXPAND HEALTHCARE CAPACITY

The Lagos State Government has called for increased private-sector investment and stronger partnerships to expand healthcare capacity and build a sustainable health system capable of meeting the needs of the state’s growing population. Commissioner for Health, Prof. Akin Abayomi, made the appeal while speaking at the Lagos Chamber of Commerce and Industry Medical, Pharmaceuticals and Allied Services Group Symposium.

Abayomi said government funding alone would not be sufficient to develop a healthcare system capable of serving a population estimated at about 30 million people. He explained that the state was therefore creating opportunities for investors in areas beyond conventional hospitals, including specialist healthcare facilities, diagnostic centres, pharmaceutical production, medical manufacturing, pharmacy services, health technology, digital health, research and clinical trials.

The commissioner highlighted the Lagos State Medical Infrastructure Investment Zone, LASMIIZO, as one of the platforms being developed to attract private capital into the sector. He said the initiative would provide opportunities for investors while the government focuses on creating an environment supported by appropriate policies, regulation, infrastructure and standards. According to him, the private sector would bring capital, technology, expertise and innovation needed to accelerate development.

Abayomi stressed that attracting investors would require more than tax incentives and other short-term benefits, noting that businesses needed a predictable operating environment before committing substantial capital. He said Lagos was moving towards risk-sharing arrangements, co-investment, long-term public-private partnerships, concessional financing, performance-based contracts and structured demand instead of relying mainly on temporary subsidies and tax holidays.

The commissioner also identified healthcare financing as a major component of the strategy, noting that more than 70 per cent of healthcare services in Lagos are provided by private operators while over 70 per cent of health expenditure is reportedly paid directly by individuals. He therefore described health insurance as central to creating stronger purchasing power and a sustainable healthcare market. Abayomi urged investors and innovators to partner with Lagos in developing specialist services, diagnostic networks, local medical manufacturing, digital health solutions, research facilities and professional training that could serve not only Lagos but Nigeria and the wider African market.