By Favour Pius
The Bureau of Public Procurement (BPP) has directed insurance companies in the country to decline cover for any government vehicle not assembled in Nigeria, to enforce the Federal Government’s local content policy, and to reshape underwriting conditions for public sector fleets.
Director-General of the BPP, Adebowale Adedokun, issued the directive yesterday during the signing of a Memorandum of Understanding (MOU) between the bureau and the National Insurance Commission (NAICOM), starting that insurers must align with the administration’s “Nigeria First” policy by restricting cover to locally assembled vehicles procured by government institutions.
“We need this message to be sent to all insurance companies that they cannot insure any vehicle that has been assembled in this country,” Adedokun said, adding that compliance with ethical standards and governance codes within the sector would be strictly monitored.
He explained that the partnership between the BPP and NAICOM is designed to strengthen oversight in insurance-related procurement, close regulatory gaps, and ensure value for money in public spending.
A joint working group comprising officials of both agencies has been established to standardize insurance requirements, improve documentation processes, and enhance transparency in the insurance of bonds and policies tied to government contracts.
Adedokun disclosed that the bureau would leverage NAICOm’s technical capacity and industry database to address deficiencies in insurance procurement and update operators on evolving public procurement procedures.
He reiterated that unethical practices within the value chain would not be tolerated.
In his remarks, the Commissioner for Insurance, Olusegun Omosehin, assured the bureau of full industry cooperation, noting that licensed insurers would honour valid obligations arising from approved procurement processes.
He said the collaboration would help standardize insurance compliance within the public sector and reinforce accountability across the market.
The directive comes amid ongoing procurement reforms at the BPP, which the Director-General recently said resulted in savings of over N1.1 trillion for the Federal Government between January and December 2025, along with faster contract approvals and stricter sanctions for non-compliant contractors and officials.
Chairman of the Senate Committee on Procurement, Olajide Ipinsagba, has reaffirmed legislative backing for strengthened oversight of government spending, emphasizing the role of prudent financial management in driving socio-economic development.
Industry observers say the policy could significantly influence underwriting practices for government fleets while boosting demand for locally assembled vehicles, reinforcing broader efforts to deepen domestic manufacturing and retain economic value within Nigeria.
