Speaker Mudashiru Obasa confirmed the development before the bill scaled second reading during plenary on Thursday.
Obasa said the bill aimed to strengthen the health sector by producing highly skilled professionals through specialised tertiary education.
He added that the proposed law would expand access to courses in medicine, nursing, and other health sciences.
The Speaker thereafter referred the bill to the Joint Committee on Tertiary Institutions and Health Services for further legislative and public scrutiny.
According to him, the Joint Committee is expected to present its findings to the House within three weeks.
Chairman of the Committee on Tertiary Institutions, Ajani Owolabi, explained that the university would help increase admission opportunities for medical students.
He noted that most medical schools admit fewer than 100 students annually, but with the new institution, admissions could exceed 1,000, widening access to medical training.
Contributing, lawmaker Musbau Lawal said the university’s establishment would greatly benefit the people of the state.
Lawal stressed that it would curb the “relocation syndrome” among youths seeking medical education abroad and address the shortage of doctors and health professionals.
He cited institutions such as LASUCOM as successful models.
Another lawmaker, Saheed Obafemi, observed that the bill would also tackle unemployment by providing jobs in health and education, while boosting the state’s economy.
Other lawmakers also debated the merits and challenges of the proposed legislation.