NAICOM, BPP ink pact to tighten insurance compliance in public procurement

Kindly leave a comment and share

Blessing Chuks Okonta

The National Insurance Commission (NAICOM) and the Bureau of Public Procurement (BPP) have signed a landmark Memorandum of Understanding (MoU) aimed at institutionalizing insurance compliance within Nigeria’s public procurement framework.

The agreement, signed on Monday, March 2, 2026, at the NAICOM headquarters in Abuja, seeks to harmonize regulatory oversight and ensure that public assets are adequately protected while driving the Federal Government’s $1 trillion economic agenda.

Strengthening Regulatory Synergy
Speaking during the working visit, the Commissioner for Insurance (CFI) Olusegun Ayo Omosehin, noted that the collaboration is vital for the realization of the Nigerian Insurance Industry Reform Act 2025.

Omosehin highlighted that NAICOM’s current priorities—ranging from recapitalization and policyholder protection to legal modernization—require strategic partnerships with key agencies like the BPP to be fully effective.

“We are establishing a platform to monitor and verify insurance coverage for public procurement items. This ensures that insurance operators strictly adhere to established rules and standards,” Omosehin stated.

Digitalization and “Nigeria First” Policy
The Director-General of the BPP, Dr. Adebowale Adedokun, emphasized that the MoU is a shift toward execution rather than mere formality. He revealed that the BPP has transitioned to a fully digital submission model to accelerate approvals and curb corruption.

Dr. Adedokun urged contractors and procuring entities to prioritize insurance bonds, stressing that this would support local market growth in line with the “Nigeria First” policy and affirmative procurement for women, youth, and startups.

Key highlights of the MoU include:

Standardisation: Clarifying insurance requirements and bonds across all public contracts.

Verification: Integration of insurance companies into the BPP database for effective monitoring.

Joint Oversight: Formation of a technical working group and periodic retreats to refine sector-specific procurement templates.

Local Content: Increasing the use of indigenous insurance capacity in public works.

The partnership comes at a critical time as the insurance industry undergoes a rigorous recapitalization exercise to boost financial resilience. By embedding insurance more deeply into the procurement process, both agencies aim to institutionalize robust risk management and build investor confidence in government transactions.

Dr. Adedokun reaffirmed that the BPP would not grant approvals to unqualified operators, insisting that transparency and value for money remain the Bureau’s benchmarks.