This study presents an overview of the fiscal space available to Lagos State government with specific regards to the Lagos State Health Scheme (LSHS). The analysis is prompted by the need for increases in public health spending necessitated by the scheme, which forms a crucial demand-side intervention in the context of the Lagos State Health Scheme (LSHS) established recently by the Lagos State Health Scheme Law of 2015. While implementation of the scheme is currently in progress there is an existential need on the part of Lagos State Ministry of Health (LSMoH) to clearly analyze the fiscal implications of the scheme and identify options available to address these implications.
It is in this context that USAID’s Health Financing and Governance (HFG) project in collaboration with Centre for Health Economics and Development (CHECOD) was commissioned to provide support for estimating the fiscal space available to Lagos State, modeling the cost of scaling up LSHS, and relating the two estimates to inform the target setting, advocacy and planning needs of the LSMoH.
This study presents an overview of the fiscal space available to Lagos State with specific regards to the LSHS and analyzes its implications over a five-year period using different financing thresholds and scale-up scenarios. This is to provide decision-makers with options for informed choices.