The National Insurance Commission has signed a Memorandum of Understanding with the Bureau of Public Procurement to strengthen the insurance industry, particularly in relation to public procurement processes.
According to a statement from the insurance regulator, the Commissioner for Insurance, Olusegun Omosehin, on Monday welcomed the Director-General of BPP, Adebowale Adedokun, and his delegation to NAICOM for a working visit, which culminated in the signing of the agreement.
During the visit, Omosehin highlighted the role of NAICOM as the statutory regulator charged with supervising, regulating and promoting the growth of Nigeria’s insurance industry.
He further stated NAICOM’s current reform priorities include policyholder protection, regulatory capacity building, legal modernisation, recapitalisation, and increasing insurance penetration.
Describing the visit as significant, the Commissioner emphasised that the collaboration would reinforce the principles of public procurement and insurance practice in Nigeria.
He noted that achieving President Bola Tinubu’s vision of transforming Nigeria’s economy into a one-trillion-dollar economy requires strong inter-agency cooperation.
The CFI stressed that the Commission’s reform objectives cannot be fully realised without strategic collaboration with agencies such as the BPP. The Commissioner further disclosed plans to establish a platform to monitor and verify insurance coverage for public procurement items and assured that insurance operators would strictly adhere to established rules and standards.
The CFI stated that the signing of the MoU is a pivotal step in aligning the role of insurance with national development goals.
The MoU comes amid NAICOM’s ongoing reform following the Nigerian Insurance Industry Reform Act 2025. The reform has initiated a recapitalisation and verification exercise to strengthen the financial resilience of insurers, improve market confidence, and catalyse innovation and penetration. The BPP’s sector-specific procurement approach and digitalisation agenda complement NAICOM’s objectives by ensuring insurance procurement is transparent, efficient and aligned with national development priorities such as the Nigeria First policy and affirmative procurement for women, youth, startups and persons with disabilities.
The MoU formalises joint commitments to standardise and clarify insurance requirements across public procurement, including insurance bonds for public procurement; promote financial stability and consumer protection; use insurance bonds to support local insurance market growth and increase local content in public contracts; and establish a joint technical working group and periodic retreats to monitor implementation, troubleshoot challenges and refine sector-specific procurement templates and guidelines.
In his remarks, the Director-General of BPP commended the transformation in the insurance industry, describing the Commission’s environment as serene and reflective of its readiness to support the Federal Government’s economic growth agenda.
Adedokun welcomed the partnership and highlighted implementation as the critical next phase, saying, “Signing an MoU is only the beginning; what matters is delivery. The BPP has moved to a fully digital submission model to speed approvals and reduce opportunities for corruption.”
He called on contractors and procuring entities to adopt insurance bonds to support Nigerian insurance sector growth and development and comply with the Nigeria First policy and affirmative procurement principles of the current administration.
Adedokun reiterated the BPP’s commitment to sector-specific procurement approaches that match value for money and support local industry development. He also reaffirmed that regulatory oversight rests with both NAICOM and the BPP, ensuring transparency and accountability. On capacity building, he recommended closer collaboration between both agencies and pledged the BPP’s commitment to achieving shared goals.
He emphasised that under his leadership, the BPP would not condone unethical practices or grant approvals to unqualified operators, urging insurance companies to ensure their inclusion in the BPP database for effective monitoring.
The signing of the MoU between both bodies marks a significant milestone in strengthening transparency, protecting public assets, and institutionalising robust risk management within Nigeria’s procurement system.
The partnering agencies added that by embedding insurance more firmly into public procurement processes, the partnership enhances governance standards and builds greater confidence in government transactions.
