WorldStage– In a move to enhance collaboration and strengthen the insurance industry, particularly regarding public procurement processes, the National Insurance Commission (NAICOM) has signed a memorandum of understanding (MoU) with the Bureau of Public Procurement (BPP).
The Commissioner for Insurance, Olusegun Ayo Omosehin who on Monday welcomed the Director-General of BPP, Adebowale Adedokun, and his delegation to NAICOM for a working visit, which culminated in the signing of the agreement , highlighted the role of NAICOM as the statutory regulator charged with supervising, regulating and promoting the growth of Nigeria’s insurance industry. He further stated NAICOM’s current reform priorities include policyholder protection, regulatory capacity building, legal modernization, recapitalization, and increasing insurance penetration.
Describing the visit as significant, the Commissioner emphasized that the collaboration would reinforce the principles of public procurement and insurance practice in Nigeria. He noted that achieving President Bola Ahmed Tinubu’s vision of transforming Nigeria’s economy into a one-trillion-dollar economy requires strong inter-agency cooperation.
The CFI stressed that the Commission’s reform objectives cannot be fully realized without strategic collaboration with agencies such as BPP. The Commissioner further disclosed plans to establish a platform to monitor and verify insurance coverage for public procurement items and assured that insurance operators would strictly adhere to established rules and standards.
The CFI stated that the signing of the MoU is a pivotal step in aligning the role of insurance with national development goals. The MoU comes amid NAICOM’s ongoing reform following the Nigerian Insurance Industry Reform Act 2025.
The reform has initiated a recapitalization and verification exercise to strengthen the financial resilience of insurers, improve market confidence, and catalyze innovation and penetration. BPP’s sector-specific procurement approach and digitalization agenda complements NAICOM’s objectives by ensuring insurance procurement is transparent, efficient and aligned with national development priorities such as the Nigerian First policy and affirmative procurement for women, youth, startups and persons with disabilities.
In his remarks, the Director-General of BPP, Dr. Adebowale Adedokun, commended the transformation in the insurance industry, describing the Commission’s environment as serene and reflective of its readiness to support the Federal Government’s economic growth agenda.
Dr. Adebowale Adedokun, welcomed the partnership and highlighted implementation as the critical next phase: “Signing MoU is only the beginning — what matters is delivery. BPP has moved to a fully digital submission model to speed approvals and reduce opportunities for corruption”. He called on contractors and procuring entities to adopt insurance bonds to support Nigerian insurance sector growth and development and comply with the Nigeria First policy and affirmative procurement principles of the current administration.
Dr. Adedokun reiterated BPP’s commitment to sector-specific procurement approaches that match value for money and support local industry development.
He reaffirmed that regulatory oversight rests with both NAICOM and BPP, ensuring transparency and accountability. On capacity building, he recommended closer collaboration between both agencies and pledged BPP’s commitment to achieving shared goals.
He emphasized that under his leadership, BPP would not condone unethical practices or grant approvals to unqualified operators, urging insurance companies to ensure their inclusion in the BPP database for effective monitoring.
The Memorandum of Understanding was formally signed by the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, and the Director-General of BPP, Dr. Adebowale Adedokun, marking a significant step toward enhanced regulatory synergy and sustainable growth in Nigeria’s insurance and public procurement sectors.
The MoU formalizes joint commitments to: Standardize and clarify insurance requirements across public procurement, including insurance bonds for public procurement; Promote financial stability and consumer protection; Use of insurance bonds to support local insurance market growth and increase local content in public contracts and Establish a joint technical working group and periodic retreats to monitor implementation, troubleshoot challenges and refine sector-specific procurement templates and guidelines.
The signing of the Memorandum of Understanding between NAICOM and the Bureau of Public Procurement marks a significant milestone in strengthening transparency, protecting public assets, and institutionalizing robust risk management within Nigeria’s procurement system. By embedding insurance more firmly into public procurement processes, the partnership enhances governance standards and builds greater confidence in government transactions.
As Nigeria advances its agenda for economic renewal, this collaboration underscores the Federal Government’s commitment to modernizing the insurance sector and elevating it as a key driver of national development. NAICOM remains dedicated to delivering reforms that deepen trust, strengthen compliance, and position insurance as an essential tool for safeguarding public resources and supporting sustainable economic transformation.
