NAICOM, BPP seal MoU to deepen insurance compliance in public procurement
The National Insurance Commission (NAICOM) and the Bureau of Public Procurement (BPP) have formalised a strategic partnership aimed at strengthening insurance compliance within Nigeria’s public procurement system and reinforcing the insurance sector’s contribution to national economic transformation.
The collaboration was cemented on Monday with the signing of a Memorandum of Understanding (MoU) by the Commissioner for Insurance/Chief Executive Officer of NAICOM, Olusegun Ayo Omosehin, and the Director-General of BPP, Adebowale Adedokun, during a working visit by the BPP delegation to NAICOM.
Speaking at the event, Omosehin reaffirmed NAICOM’s statutory mandate to regulate, supervise and promote the growth of Nigeria’s insurance industry.
He noted that ongoing reforms within the Commission are focused on policyholder protection, strengthening regulatory capacity, legal modernisation, recapitalisation and increasing insurance penetration.
He described the inter-agency partnership as critical to realising the economic vision of President Bola Ahmed Tinubu, particularly the ambition of transforming Nigeria into a one-trillion-dollar economy.
According to him, NAICOM’s reform agenda would require strong collaboration with key institutions such as the BPP to succeed.
Omosehin also disclosed plans to establish a dedicated platform for monitoring and verifying insurance coverage linked to public procurement items, assuring that industry operators would adhere strictly to regulatory standards.
The MoU aligns with reforms introduced under the Nigerian Insurance Industry Reform Act 2025, which has ushered in recapitalisation and verification exercises designed to enhance insurers’ financial strength, boost market confidence and stimulate innovation and market penetration.
Under the agreement, both agencies will standardise insurance requirements across procurement processes, including the use of insurance bonds.
They also plan to promote financial stability, consumer protection and local content in public contracts, while setting up a joint technical working group with periodic reviews to refine procurement templates.
In his remarks, Mr Adedokun described the signing as a foundational step, stressing that effective implementation would determine its impact.
He highlighted the BPP’s transition to a fully digital submission system aimed at speeding up approvals and reducing corruption risks.
“Signing the MoU is only the beginning, what matters is delivery,” he said, while urging contractors and procuring entities to embrace insurance bonds in line with the Nigeria First policy and affirmative procurement principles supporting women, youth, startups and persons with disabilities.
He further assured that regulatory oversight would be jointly enforced by NAICOM and BPP to ensure transparency and accountability, warning that the BPP would not approve unqualified operators.
He advised insurance firms to ensure proper registration in the BPP database to facilitate effective monitoring.
The partnership is widely regarded as a milestone in embedding risk management within Nigeria’s procurement framework.
By integrating insurance more firmly into public contracting, the alliance is expected to safeguard public assets, enhance governance standards and strengthen confidence in government transactions as the country advances its economic renewal agenda.
