The Lagos State Government has launched the Ilera N’ Tiwa Cooperative and Multipurpose Society Ltd to promote financial inclusion and expand health insurance coverage for residents, particularly those in the informal sector, under the Ilera Eko health insurance scheme.
The initiative, spearheaded by the Lagos State Health Management Agency (LASHMA), is part of the broader Ilera Eko Cooperative and Multipurpose Society (IECMS).
It is designed to ease access to healthcare by offering flexible premium payment options while providing economic benefits such as loans and discounted food supplies.
Speaking during the flag-off ceremony of the cooperative initiative, the Board Chairman of LASHMA, Dr. Bayo Adedewe explained that the cooperative is a strategic response to challenges such as low purchasing power, lapsed health insurance policies, and limited access to quality healthcare.
He emphasized that the initiative would alleviate financial barriers to healthcare and foster a wellness-oriented culture and allow members to pay premiums flexibly while providing economic benefits like loans and discounted food supplies.
A necessity for improved health coverage
Dr. Adedewe described the cooperative as a “child of necessity“, noting that the initiative aligns with the Lagos State Health Scheme (LSHS) law and the National Health Insurance Authority (NHIA) Act, mandating social health insurance for all residents.
“The cooperative prioritizes health while integrating social and economic benefits. It will provide a platform for financial support, entrepreneurship, and lifestyle improvement for members,” he emphasized.
Dr. Adedewe further noted that the cooperative’s slogan, “Health First”, reflects its commitment to making healthcare affordable, accessible, and sustainable.
He encouraged Lagosians to embrace the initiative, which he believes is a model for voluntary enrollment in health schemes without enforcement. He expressed confidence that the program would help Lagos achieve its UHC goals, providing a replicable model for other states.
Expanding Financial Inclusion
Permanent Secretary of LASHMA, Dr. Emmanuella Zamba highlighted the innovative nature of the cooperative, particularly its focus on financial inclusion.
“Many in the informal sector lack bank accounts, making health insurance enrollment difficult,” she explained.
- The cooperative, she added, addresses this gap by facilitating installment payments through partnerships with microfinance banks and offering additional benefits like wellness programs and cheaper food options.
- Dr. Zamba expressed optimism that the initiative would bring the informal sector into the health insurance fold, making it easier for them to access quality healthcare.
- Also speaking, in a comprehensive presentation, LASHMA’s Head of Business Development, Mr. Rotimi Olatunji, identified critical issues that prompted the cooperative’s creation, including solvency challenges, benefit expansion, and attrition in enrollment. Expanding Financial Inclusion.
- He emphasized the cooperative’s purpose of providing flexible premiums, wealth creation opportunities, and compliance with mandatory health insurance laws.
Mr Olatunji also revealed the formation of independent steering and advisory committees to oversee operations and create awareness among potential members.
Broad support from key stakeholders
Representatives from key ministries expressed strong support for the initiative.
Mrs. Ayotunde Abiodun, representing Dr. Olugbemi Aina, Permanent Secretary of the Ministry of Commerce, Cooperatives, Trade, and Investment, praised the program as a model for economic empowerment, stating, “This initiative will improve lives and set a standard for other states to follow.”
Similarly, Mrs. Taiwo Abiose, speaking on behalf of Dr. Biodun Onayele, Permanent Secretary of the Ministry of Wealth Creation and Employment, highlighted the cooperative’s role in formalizing the informal sector.
She emphasized, “Enrollment in this scheme will become a requirement for accessing our programs starting next year.”
