Bureau of Public Procurement (BPP) has directed insurance companies to refrain from providing cover for government vehicles that are not assembled in Nigeria, in a move aimed at reinforcing local content policy.
The directive was announced on Monday by the Director-General of the BPP, Adebowale Adedokun, during the signing of a Memorandum of Understanding (MoU) between the bureau and the National Insurance Commission (NAICOM).
Adedokun said the measure aligns with the “Nigeria First” policy of President Bola Tinubu’s administration, which prioritises local production and economic sustainability.
“We need this message to be sent to all insurance companies that they cannot insure any vehicle that has not been assembled in this country,” he stated.
Push for Compliance and Ethical Standards
The BPP chief called on NAICOM to circulate the directive across the insurance industry and ensure compliance among licensed operators. He warned that unethical practices would not be tolerated, stressing that all regulated entities must adhere to principles of good governance, established codes of conduct and sound ethical standards.
To strengthen oversight, both agencies have constituted a joint working group tasked with improving insurance procurement processes within the public sector.
Procurement Reforms Yield Savings
The BPP, which oversees public procurement to ensure transparency and accountability in government spending, has recently highlighted gains from ongoing reforms.
According to Adedokun, procurement reforms delivered savings of over N1.1 trillion to the Federal Government between January and December 2025. The bureau also reported improvements in contract approval timelines and the enforcement of stricter sanctions against erring contractors and non-compliant officials.
He noted that the collaboration with NAICOM would enable the bureau to leverage the commission’s data bank and technical expertise to close gaps in insurance procurement and enhance value for money.
“We realise that a lot of insurance companies need to be updated in their knowledge of how procurement is being carried out,” he said.
NAICOM Assures Industry Compliance
In his remarks, the Commissioner for Insurance, Olusegun Omosehin, assured the BPP that licensed insurers would honour their obligations.
“Provided we issue the licence and approve the process, we guarantee that no insurance entity will give bond or protection and fail to honour its obligation,” Omosehin said.
He added that the partnership is intended to standardise insurance requirements in public procurement and promote greater transparency in the sector.
Separately, Chairman of the Senate Committee on Public Procurement, Olajide Ipinsagba, recently reaffirmed legislative backing for the bureau’s mandate, underscoring the role of accountability and prudent management of public funds in driving socio-economic development.
