Sovereign Trust Insurance Plc has announced the successful remittance of a N1.5 billion statutory capital deposit to the Central Bank of Nigeria (CBN), in compliance with regulatory requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The disclosure was contained in a statement issued by the company’s Deputy General Manager and Head of Corporate Communications and Investor Relations, Mr. Olusegun Bankole.
According to the company, the deposit fulfils a directive by the National Insurance Commission (NAICOM) requiring all insurance operators to lodge 10% of their regulatory minimum capital with the CBN as part of ongoing reforms aimed at strengthening the insurance sector. As a non-life insurance company, Sovereign Trust Insurance was required to deposit N1.5 billion and completed the remittance ahead of the May 31, 2026 deadline.
Commenting on the development, the Managing Director and Chief Executive Officer of Sovereign Trust Insurance Plc, Dr. Lucas Durojaiye, described the successful remittance as a major milestone in the company’s growth and recapitalisation journey. According to him, the achievement reinforces stakeholder confidence in the company’s financial strength and long-term sustainability. Durojaiye noted that the insurer remains focused on strengthening its capital base, improving operational efficiency, expanding market reach, driving innovation, and delivering enhanced insurance solutions to customers nationwide. He also reaffirmed the company’s commitment to meeting all regulatory obligations while maintaining high standards of corporate governance, professionalism, prompt claims settlement, and customer service.
The company said the successful remittance represents a significant step in its ongoing recapitalisation programme and underscores its readiness to align with regulatory initiatives aimed at improving the resilience and competitiveness of insurance operators in Nigeria. As part of its capital-raising strategy, Sovereign Trust Insurance recently launched a rights issue to existing shareholders to raise approximately N5 billion. The offer, which opened on May 4, 2026, involves the issuance of 2.51 billion ordinary shares of 50 kobo each at N2.00 per share on the basis of three new shares for every 17 shares held as of March 17, 2026. The company said the additional capital will support its growth ambitions and further strengthen its financial position amid evolving regulatory requirements.
This development comes at a time when broader economic and regulatory shifts are reshaping Nigeria’s financial landscape. For instance, Shell Executives Ignored repeated calls for greater transparency in local operations, while Nigerian Oil & gas reforms continue to attract global attention. Meanwhile, Dangote Refinery Surpasses production targets, contributing to a more stable domestic fuel supply. On the governance front, the debate around Nigeria State Police: proposals for decentralised law enforcement has gained momentum. Additionally, as the Naira Strengthens Below key exchange rate thresholds, insurers and other financial institutions are recalibrating their capital strategies to align with the evolving macroeconomic environment.
