The Ogun State Government has introduced a new health insurance scheme targeting the formal sector, which includes civil servants, public servants, and workers in the organized private sector. This initiative is part of the activities planned for the 2024 Public Service Week.
The launch of this formal sector scheme builds on the success of an earlier program introduced in February 2022 for the informal sector. That scheme enabled artisans, market women, traders, and other residents working in non-organized environments across the state to access affordable healthcare.
During the official launch of the formal sector scheme at the Obas Complex, Governor’s Office in Oke-Mosan, Abeokuta, Governor Dapo Abiodun announced that the government would subsidize 50% of the health insurance premium for each worker enrolled in the scheme. The governor, represented by his deputy, Noimot Salako-Oyedele, emphasized the administration’s commitment to the well-being and welfare of public servants, whom he described as the “engine room of the government.”
Governor Abiodun highlighted that the theme of the 2024 Civil Service Week, “Building a Socially Responsive Public Service in the 21st Century: A Place of Ethics and Values,” aligns with the administration’s vision for a modern and ethical public service.
“I want to reassure all public servants that their well-being will continue to be a priority in our development agenda,” the governor stated. He cited several initiatives, including the payment of a ₦100 million counterpart fund that has enabled the state to access the Federal Government’s Basic Health Care Provision Fund since February 2020, the launch of the Informal Sector Health Insurance Scheme in 2020, and the provision of a ₦100 million take-off grant for the Ogun State Health Insurance Agency.
Governor Abiodun also mentioned recent palliative measures in the health sector, such as the release of ₦310 million as an equity fund to provide health insurance access to low-income residents, which facilitated free surgeries for over a thousand people. Additionally, ₦324 million was allocated to support 3,300 pregnant women under the “Ibidero” scheme, covering antenatal and postnatal care and providing a ₦5,000 token after delivery.
The governor stressed that the success of the health insurance scheme would depend on collective efforts, including close collaboration with health officials and stakeholders to ensure effective implementation, monitoring, and continuous improvement.
In her remarks, the Commissioner for Health, Tomi Coker, noted that nearly 80% of Nigerians pay out-of-pocket for healthcare, making many vulnerable to catastrophic health expenses. She urged Ogun State residents to take advantage of both the informal and formal sector schemes, emphasizing that these programs offer financial protection against undue health costs that could lead to extreme poverty.
“I am delighted that Prince Dapo Abiodun, who has consistently prioritized health, is launching this scheme today. This initiative is no longer just a plan; it is already in action. Rest assured, this scheme is here to stay,” she affirmed.
Kehinde Onasanya, the Head of Service, highlighted the importance of good health for successful socio-economic endeavors, reinforcing the adage “Health is wealth.” He noted that the governor’s decision to launch the formal sector health insurance scheme reflects the administration’s understanding that healthcare is central to improving workforce productivity. The scheme, he added, would positively impact not only the workers but also their families.
Ademola Benco, the Chairperson of the Nigeria Labour Congress (NLC) Ogun State chapter, praised Governor Abiodun for being attentive to workers’ welfare and commended him for subsidizing 50% of the health insurance premium. He also called on the government to ensure that the program remains consistent and sustainable, pledging the union’s full support for its success.
