National Insurance Commission and Bureau of Public Procurement have signed a Memorandum of Understanding (MoU) to strengthen insurance compliance in Nigeria’s public procurement system.
The agreement, signed in Abuja, is designed to ensure that insurance requirements are properly embedded in government contracts, while supporting the Federal Government’s broader economic reform agenda.
The Commissioner for Insurance, Olusegun Ayo Omosehin, disclosed the development during a working visit by the Director-General of BPP, Adebowale Adedokun, and his delegation.
Boosting Compliance in Public Procurement
Omosehin said the partnership will reinforce compliance with insurance provisions in government projects and procurement activities.
According to him, NAICOM’s ongoing reform agenda focuses on policyholder protection, stronger regulation, legal modernisation, recapitalisation, and deeper insurance penetration.
He described the MoU as a strategic step toward ensuring that insurance coverage is properly verified for government-funded projects and assets.
“Achieving the administration’s economic transformation agenda will require stronger collaboration among government agencies,” Omosehin said.
The reforms follow the enactment of the Nigerian Insurance Industry Reform Act 2025, which introduced recapitalisation requirements and other measures to strengthen the financial resilience of insurers.
Supporting Nigeria’s $1 Trillion Economic Vision
Omosehin noted that the partnership aligns with the economic vision of President Bola Ahmed Tinubu, whose administration aims to grow Nigeria’s economy to $1 trillion.
To support this effort, NAICOM plans to launch a monitoring platform that will verify insurance coverage for projects under public procurement.
Digital Procurement to Curb Corruption
BPP Director-General Adedokun said the Bureau has already moved to a fully digital submission system to speed up approvals and reduce opportunities for corruption.
He urged contractors and procuring entities to adopt insurance bonds as part of procurement requirements, noting that the move would also strengthen Nigeria’s insurance market.
Adedokun stressed that both agencies will jointly oversee insurance-related procurement matters to ensure transparency and accountability.
Framework for Stronger Oversight
Under the MoU, both regulators will:
- Standardise insurance requirements in public procurement
- Promote financial stability and consumer protection
- Encourage the use of insurance bonds in government contracts
- Establish a joint technical working group to monitor implementation
Industry analysts say the collaboration could improve transparency in government transactions, protect public assets, and embed risk management more firmly into Nigeria’s procurement system.
