The National Insurance Commission (NAICOM) and the Bureau of Public Procurement (BPP) have signed a Memorandum of Understanding to harmonise requirements for issuing insurance bonds within Nigeria’s public procurement system, aiming to enhance transparency and accountability in the sector.
Okay News reports that the agreement was formalised on Monday in Abuja by the heads of both agencies. Insurance bonds, also known as financial guarantee insurance, provide assurance that bond issuers such as government entities or corporations will repay principal and interest to investors in the event of default. The partnership ensures that guidelines and requirements for insurance services procured through public contracts are properly defined and enforced.
Speaking at the signing ceremony, Commissioner for Insurance Olusegun Omosehin said the collaboration would ensure citizens benefit from the transformation in the sector. He explained that since insurance services are part of public procurement, closer collaboration with the BPP was necessary to ensure proper understanding of guidelines and requirements. He added that consumer protection, regulatory capacity building, and financial stability of insurance firms remain top priorities for the Commission.
Director-General of the BPP, Dr Adebowale Adedokun, commended NAICOM’s reform efforts and said the bureau would rely on the Commission’s technical expertise when reviewing insurance-related procurement requests. He warned that unethical practices would not be tolerated and insisted that insurers must adhere to governance standards and professional codes of conduct. Data from the Central Bank of Nigeria shows that total assets held by Nigerian insurance companies rose to a record N4.619 trillion (approximately $2.95 billion) at the end of Q2 2025, reflecting the sector’s resilience and expanding capacity. This insurance bond standardisation aims to strengthen oversight and ensure compliance in public procurement processes.
 and the Bureau of Public Procurement (BPP) have signed a Memorandum of Understanding to harmonise requirements for issuing insurance bonds within Nigeria's public procurement system, aiming to enhance transparency and accountability in the sector.){kind=link}