The National Insurance Commission (NAICOM) has formalised a Memorandum of Understanding (MoU) with the Bureau of Public Procurement (BPP) to foster closer collaboration and reinforce the insurance industry's role in public procurement processes.
Commissioner for Insurance (CFI)/Chief Executive of NAICOM, Mr. Olusegun Omosehin, expressed that this partnership would strengthen both public procurement principles and insurance practices across the nation.
During a visit from the Director-General of BPP, Adebowale Adedokun, to the commission, Omosehin highlighted that achieving President Bola Tinubu's economic ambitions necessitates robust inter-agency cooperation. He emphasised that NAICOM's reform objectives are significantly dependent on strategic alliances with agencies like the BPP.
Omosehin announced plans to develop a system for verifying insurance coverage for public procurement projects, assuring that insurance providers would adhere strictly to established regulations and standards.
He described the MoU signing as a crucial step in aligning the insurance sector with the country's broader development objectives.
The agreement comes at a time when NAICOM is implementing reforms following the Nigerian Insurance Industry Reform Act of 2025. This initiative includes a recapitalisation and verification drive designed to enhance the financial stability of insurance companies, boost market confidence, and stimulate innovation and market penetration.
The BPP's approach to sector-specific procurement and its digitisation efforts are expected to complement NAICOM's goals. This synergy aims to ensure that insurance procurement is conducted transparently, efficiently, and in line with national development priorities, including the "Nigerian First" policy and affirmative procurement measures for women, youth, start-ups, and individuals with disabilities.
Omosehin reiterated NAICOM's mandate as the primary regulator responsible for supervising, overseeing, and promoting the growth of Nigeria's insurance industry. He outlined NAICOM's current reform priorities, which focus on protecting policyholders, building regulatory capacity, modernising legal frameworks, recapitalising the sector, and increasing insurance penetration rates.
Adedokun, the BPP Director-General, praised the ongoing transformation within the insurance sector, noting the commission's calm environment as indicative of its readiness to support the federal government's economic growth agenda. He welcomed the new partnership, stressing that successful implementation would be key.
"Signing an MoU is merely the initial step; delivery is what truly counts," Adedokun stated, adding that the BPP has transitioned to a fully digital submission model to expedite approvals and minimise opportunities for corruption.
He urged contractors and procuring entities to utilise insurance bonds to support the Nigerian insurance sector's growth and development, while also adhering to the current administration's "Nigeria First" policy and affirmative procurement principles.
Adedokun reaffirmed the BPP's dedication to employing sector-specific procurement strategies that ensure value for money and foster local industry development. He confirmed that oversight responsibilities would be shared by both NAICOM and BPP to guarantee transparency and accountability.
Regarding capacity building, he advocated for closer collaboration between the two agencies and pledged the BPP's commitment to achieving their shared objectives. Adedokun emphasised that under his leadership, the BPP would not tolerate unethical practices or approve unqualified operators, encouraging insurance companies to register with the BPP database for effective monitoring.
The MoU was officially executed by Omosehin and Adedokun, signifying a major advancement in regulatory synergy and sustainable growth for Nigeria's insurance and public procurement sectors.
Essentially, the agreement codifies joint commitments to standardise and clarify insurance requirements in public procurement, including insurance bonds. It also aims to promote financial stability, consumer protection, use insurance bonds to bolster the local insurance market, and enhance local content in public contracts. Furthermore, it establishes a joint technical working group and periodic retreats to oversee implementation, address challenges, and refine sector-specific procurement templates and guidelines.
This partnership represents a significant milestone in enhancing transparency, safeguarding public assets, and institutionalising robust risk management within Nigeria's procurement system. By integrating insurance more firmly into public procurement processes, the collaboration strengthens governance standards and builds greater confidence in government transactions.
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