NAICOM, BPP partner on Insurance compliance in procurement

Barbara Bako, Abuja.

The National Insurance Commission (NAICOM) and the Bureau of Public Procurement (BPP) have signed a Memorandum of Understanding (MoU) aimed at strengthening insurance compliance in Nigeria’s public procurement system and deepening inter-agency collaboration.

The agreement was signed on Monday at NAICOM headquarters during a working visit by the Director-General of BPP, Dr. Adebowale Adedokun, to the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin.

Speaking at the event, Omosehin said NAICOM, as the statutory regulator of the insurance industry, remains committed to supervising and promoting the sector’s growth in line with national development priorities.

He listed the Commission’s current reform focus to include policyholder protection, regulatory capacity building, legal modernization, recapitalisation and increased insurance penetration.

He described the partnership as critical to reinforcing compliance with insurance requirements in public procurement and aligning regulatory efforts with the Federal Government’s economic transformation agenda.

According to him, achieving President Bola Ahmed Tinubu’s vision of building a one-trillion-dollar economy requires strong cooperation among key government institutions.

Omosehin disclosed plans to establish a platform to monitor and verify insurance coverage for public procurement projects, noting that insurance operators would be required to strictly adhere to established rules and standards.

The MoU comes amid ongoing reforms in the insurance sector following the enactment of the Nigerian Insurance Industry Reform Act 2025.

The reform programme includes a recapitalisation and verification exercise designed to strengthen insurers’ financial resilience, boost market confidence and promote innovation.

Under the agreement, both agencies will standardise and clarify insurance requirements in public procurement processes, including the use of insurance bonds.

They also agreed to promote financial stability and consumer protection, support local content in public contracts, and establish a joint technical working group to monitor implementation and address emerging challenges.

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In his remarks, Adedokun welcomed the partnership and stressed the importance of effective implementation.

“Signing MoU is only the beginning what matters is delivery. BPP has moved to a fully digital submission model to speed approvals and reduce opportunities for corruption,” he said.

He urged contractors and procuring entities to adopt insurance bonds to support the growth of the local insurance market and comply with the Nigeria First policy and affirmative procurement principles of the current administration.

Adedokun reaffirmed BPP’s commitment to sector specific procurement approaches that promote value for money and local industry development, adding that regulatory oversight would be jointly strengthened by both institutions to enhance transparency and accountability.

He also pledged closer collaboration on capacity building and warned that the Bureau would not approve unqualified operators, urging insurance companies to ensure their inclusion in the BPP database for effective monitoring.

The MoU was formally signed by Omosehin and Adedokun, marking a new phase of regulatory synergy between the insurance and public procurement sectors.

Industry stakeholders say the partnership is expected to institutionalise stronger risk management practices within government contracting, safeguard public assets and build greater confidence in public transactions as Nigeria pursues broader economic reform.