The National Insurance Commission (NAICOM) has signed a Memorandum of Understanding (MoU) with the Bureau of Public Procurement (BPP) to enhance collaboration and strengthen the insurance industry, particularly in relation to public procurement processes.
The Commissioner for Insurance, Olusegun Ayo Omosehin, and the Director-General of BPP, Adebowale Adedokun, executed this on Monday, March 2 2026 at the NAICOM office in Abuja. He describing the visit as significant, and geared towards collaboration that would reinforce the principles of public procurement and insurance practice in Nigeria. Adding 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 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, Dr. Adedokun, commended the transformation in the insurance industry, and 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.
He said both bodies would collaborate and remain committed to shared values that would not condone unethical practices or grant approvals to unqualified operators and also used the moment to urge insurance companies to ensure their inclusion in the BPP database for effective monitoring.
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.
- Establish a joint technical working group and periodic retreats to monitor implementation, troubleshoot challenges and refine sector-specific procurement templates and guidelines.
NAICOM stated 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.
