The National Insurance Commission (NAICOM) and the Bureau of Public Procurement (BPP) have signed a Memorandum of Understanding (MoU) to harmonise requirements for issuing insurance bonds within Nigeria’s public procurement framework. The agreement was formalised on Monday in Abuja by the heads of both agencies.
Insurance bonds, also called financial guarantee insurance, assure investors that issuers — including government entities and corporations — will repay principal and interest in the event of default.
Speaking at the ceremony, NAICOM Commissioner for Insurance, Olusegun Omosehin, said the partnership would enhance transparency and accountability. “This will ensure that citizens benefit from the transformation in the sector,” he noted.
Omosehin emphasised that insurance services, as part of public procurement, require close collaboration with the BPP to define and enforce proper guidelines and requirements. He added that consumer protection, regulatory capacity building, and the financial stability of insurance firms remain top priorities for NAICOM.
“Achieving the administration’s broader reform agenda requires strong inter-agency cooperation, including the ability to track insurance procurements and ensure compliance after approvals are granted,” he said.
According to the National Bureau of Statistics (NBS), Nigeria’s finance and insurance sector grew by 14.54% in 2025, up from 2.95% in 2024. Financial institutions accounted for 90.43% of sector output in Q4 2025, while the insurance subsector contributed 9.57%. Overall, the sector’s contribution to real GDP rose to 2.56% in Q4 2025, up from 2.46% in the same period in 2024.
