NAICOM and BPP Join Forces to Track Insurance for Government Contracts
By Patience Ikpeme
The National Insurance Commission (NAICOM) is set to launch a new digital platform that will track and verify all insurance policies linked to government contracts. This move is part of a fresh partnership between NAICOM and the Bureau of Public Procurement (BPP) to ensure that public assets are properly protected and that only genuine insurance companies handle government business.
The agreement was made official on Monday in Abuja when the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, and the Director-General of the BPP, Dr. Adebowale Adedokun, signed a Memorandum of Understanding (MoU). This partnership comes at a time when the insurance industry is undergoing major changes following the Nigerian Insurance Industry Reform Act 2025, which requires insurance companies to increase their financial strength.
Speaking during the ceremony, Mr. Omosehin explained that the new tracking system would make it impossible for people to bypass insurance rules in public projects. He pointed out that for President Bola Ahmed Tinubu to achieve his goal of building a one-trillion-dollar economy, different government agencies must work together.
“The signing of this MoU is a vital step in making sure the insurance sector plays its part in national development,” Mr. Omosehin said. He also promised that insurance companies would be held to the highest standards, stating that “the Commission will ensure that operators follow all laid-down rules and professional standards strictly.”
On his part, the Director-General of the BPP, Dr. Adebowale Adedokun, said his agency has already moved to a fully digital system for contract approvals to speed up work and stop corruption. He warned that the BPP would no longer approve contracts for companies that do not meet the right criteria.
“Signing this agreement is just the beginning; what matters most is the result. At BPP, we will not tolerate any unethical behavior or give approvals to operators who are not qualified. I am calling on all insurance companies to make sure they are registered in the BPP database so we can monitor them properly,” Dr. Adedokun said.
The BPP boss also encouraged contractors to use insurance bonds, which help grow the local economy and support the “Nigeria First” policy. He noted that this approach would also help women, youths, and people living with disabilities get more opportunities in government contracts.
Under this new deal, NAICOM and BPP will set up a joint technical team to meet regularly and solve any problems that might arise. They will also work together to create clear rules on the type of insurance needed for different government projects, ensuring that taxpayers’ money is well-spent and public properties are safe.
This collaboration is expected to bring more transparency to how government projects are insured, making it harder for fake insurance papers to be used in the procurement process.
