NAICOM, BPP sign MoU – The Nation Newspaper

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 public procurement and supporting the Federal Government’s economic transformation agenda.

The agreement, signed in Abuja, is expected to deepen collaboration between the two regulatory agencies and ensure that insurance requirements are properly integrated into government procurement processes.

The Commissioner for Insurance, Olusegun Ayo Omosehin, disclosed this during a working visit by the Director-General of BPP, Adebowale Adedokun, and his delegation to the Commission.

Omosehin said NAICOM, as the statutory regulator of the nation’s insurance sector, remains committed to policies that promote the growth and stability of the industry.

According to him, the Commission’s ongoing reform agenda focuses on policyholder protection, strengthening regulatory capacity, legal modernisation, recapitalisation and deepening insurance penetration.

He described the partnership with BPP as a strategic step towards reinforcing compliance with insurance requirements in government contracts and public procurement processes.

The Commissioner noted that achieving the economic transformation agenda of the administration of President Bola Ahmed Tinubu, including the ambition to grow Nigeria’s economy into a $1 trillion economy, would require stronger collaboration among key government agencies.

Omosehin also disclosed that the Commission plans to establish a monitoring platform that would verify insurance coverage for items and projects under public procurement, stressing that insurance operators’ would be required to comply strictly with established rules and standards.

He added that the signing of the MoU aligns the insurance sector more closely with national development priorities.

The development comes amid NAICOM’s ongoing reform following the enactment of the Nigerian Insurance Industry Reform Act 2025, which introduced measures such as recapitalisation and verification exercises aimed at strengthening the financial resilience of insurance companies, improving market confidence and boosting innovation and penetration in the sector.

In his remarks, Adedokun commended the progress recorded in the insurance industry and expressed confidence that the partnership would improve compliance and transparency in procurement processes.

He emphasised that signing the agreement marked only the beginning of the process, noting that effective implementation would determine its success.

According to him, the BPP has already moved to a fully digital submission system to accelerate approvals and reduce opportunities for corruption in procurement processes.

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Adedokun urged contractors and procuring entities to adopt insurance bonds as part of public procurement requirements, saying the move would support the growth of Nigeria’s insurance sector while aligning with the Federal Government’s local content policies.

He also reaffirmed the Bureau’s commitment to sector-specific procurement approaches that ensure value for money while promoting the development of local industries.

The BPP chief stressed that regulatory oversight of insurance-related procurement matters would be jointly undertaken by both agencies to ensure transparency and accountability.

Adedokun further called for closer collaboration between the two institutions in areas such as capacity building and monitoring of procurement processes.

He warned that the Bureau would not tolerate unethical practices or grant approvals to unqualified operators, urging insurance companies to ensure they are properly listed in the BPP database for effective monitoring.

Under the MoU, both agencies agreed to standardise insurance requirements in public procurement, promote financial stability and consumer protection, and encourage the use of insurance bonds in government contracts to support local insurance market growth.

The agreement also provides for the establishment of a joint technical working group and periodic engagements to monitor implementation, address operational challenges and refine procurement guidelines.

Industry observers say the collaboration is expected to strengthen transparency, protect public assets and institutionalise risk management within Nigeria’s public procurement system.

They noted that embedding insurance requirements more firmly into procurement processes would help build greater confidence in government transactions while supporting broader economic reforms.