The National Insurance Commission (NAICOM) and the Bureau of Public Procurement (BPP) have signed a memorandum of understanding (MoU) to strengthen insurance compliance in public procurement and improve transparency in government transactions.

The agreement was signed on Monday during a working visit by the Director-General of BPP, Dr Adebowale Adedokun, to NAICOM.

The Commissioner for Insurance, Olusegun Ayo Omosehin, said the collaboration would reinforce procurement standards and ensure that insurance plays a stronger role in national development.

“Our reform objectives cannot be fully realised without strategic collaboration with agencies such as BPP,” he said.

The NAICOM boss disclosed plans to establish a platform to monitor and verify insurance coverage for public procurement items, assuring that operators would strictly comply with established rules and standards. He described the MoU as a pivotal step in aligning insurance practice with government economic goals.

He added that stronger inter-agency cooperation is critical to achieving President Bola Ahmed Tinubu’s vision of transforming Nigeria into a one trillion-dollar economy, noting that insurance must be properly integrated into public sector transactions.
Adedokun said signing the agreement was only the first step and stressed the need for implementation.

“Signing the 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 said.

He urged contractors and procuring entities to adopt insurance bonds to support the growth of the Nigerian insurance sector and comply with existing procurement policies.

He also warned that the Bureau would not tolerate unethical practices or grant approvals to unqualified operators, calling on insurance companies to ensure they are listed on the BPP database for effective monitoring.

Adedokun reiterated that regulatory oversight rests with both agencies to guarantee transparency and accountability, and pledged BPP’s commitment to closer collaboration, including joint monitoring of implementation.

Under the agreement, both institutions will work to standardise and clarify insurance requirements across public procurement processes, including the use of insurance bonds, while promoting financial stability and consumer protection.

They also agreed to establish a joint technical working group and hold periodic engagements to review progress, address challenges and refine procurement guidelines in line with national development priorities.