The National Insurance Commission (NAICOM) has assured the Bureau of Public Procurement (BPP) that licensed insurance firms will meet their contractual obligations when issuing bonds or other forms of protection to the public.
The assurance was given by the Commissioner for Insurance, Olusegun Omosehin, during the signing of a Memorandum of Understanding (MoU) between both agencies in Abuja.
Omosehin stated that any insurer approved and licensed by the commission would be held accountable for fulfilling its commitments.
“Provided we issue the licence and approve the process, we will guarantee that no insurance entity will give bond or protection and fail to honour its obligation,” he said.
Pact to Standardise Insurance in Public Procurement
According to Omosehin, the collaboration is designed to standardise insurance requirements in public procurement and promote greater transparency across the sector. He added that the commission would ensure that companies procuring insurance through the approved process do not expose customers to unnecessary risks.
Speaking at the event, the Director-General of the BPP, Adebowale Adedokun, emphasised the importance of a strong and well-regulated insurance industry in supporting economic growth.
He noted that the bureau would leverage NAICOM’s databank and technical expertise to address 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,” Adedokun said.
Insurers Told to Support ‘Nigeria First’ Policy
Adedokun also reiterated a directive urging insurance companies not to provide cover for government vehicles that are not assembled locally. He said the move aligns with the “Nigeria First” policy of President Bola Tinubu’s administration.
“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 said, calling for industry-wide compliance.
The BPP chief further warned that unethical practices would not be tolerated, stressing that all regulated entities must adhere strictly to good governance principles and established codes of conduct.
The News Agency of Nigeria (NAN) reports that a joint working group comprising officials from both agencies has been established to drive reforms in insurance procurement.
