Sovereign Trust Insurance Deposits N1.5 Billion with CBN Ahead of NIIRA Deadline
Sovereign Trust Insurance Plc (STI) has strengthened its capital position after completing the mandatory statutory deposit of N1.5 billion with the Central Bank of Nigeria (CBN) ahead of the regulatory deadline set by the National Insurance Commission (NAICOM).
The deposit was made in compliance with the provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which requires insurance companies to maintain a statutory deposit equivalent to 10 percent of the applicable minimum regulatory capital with the apex bank.
As a non-life insurance company, Sovereign Trust Insurance fulfilled the requirement before the May 31, 2026 deadline, positioning the company among operators that have successfully aligned with the new regulatory framework introduced to strengthen the Nigerian insurance industry.
The development comes as the insurance sector undergoes a recapitalisation process aimed at improving the financial capacity, resilience and competitiveness of underwriting firms operating in the country.
The company said the successful remittance of the statutory deposit underscores its commitment to maintaining a strong financial foundation, protecting policyholders’ interests and complying with evolving regulatory requirements.
The milestone also represents another step in Sovereign Trust Insurance’s broader capital enhancement programme. Earlier in May, the insurer launched a rights issue targeted at existing shareholders as part of efforts to raise additional capital.
The offer, which opened on May 4, 2026, seeks to raise N5 billion through the issuance of 2.51 billion ordinary shares of 50 kobo each at N2.00 per share.
The offer is being made on the basis of three new ordinary shares for every 17 ordinary shares held by shareholders as of March 17, 2026.
The rights issue is scheduled to close on June 10, 2026.
Managing Director and Chief Executive Officer of Sovereign Trust Insurance Plc, Dr. Lucas Durojaiye, described the completion of the statutory deposit as a significant achievement in the company’s growth strategy.
According to him, the deposit reinforces the company’s commitment to regulatory compliance and strengthens its financial solvency as it seeks to compete more effectively within Nigeria’s insurance industry.
Durojaiye noted that the achievement would further enhance confidence among shareholders, policyholders, business partners and other stakeholders regarding the company’s ability to meet its obligations while creating long-term value.
He added that management remains focused on building a stronger institution through improved service delivery, wider market penetration and sustained contribution to the growth of the Nigerian insurance industry.
The chief executive also stated that the company would continue pursuing strategic initiatives designed to reinforce its capital base, improve operational efficiency, drive innovation and expand access to insurance solutions across the country.
The NIIRA reforms are expected to reshape the Nigerian insurance landscape by promoting stronger capitalisation and improving the industry’s ability to absorb risks while enhancing consumer protection.
Industry analysts believe operators that successfully meet the new capital requirements will be better positioned to pursue growth opportunities, improve underwriting capacity and compete for larger risks in both local and international markets.
Sovereign Trust Insurance reiterated its commitment to meeting all regulatory obligations within stipulated timelines while maintaining its focus on professionalism, corporate governance, prompt claims settlement and customer-centric service delivery.
The latest capital compliance milestone comes as investors continue to monitor the progress of insurance companies in meeting the new requirements under the Nigerian Insurance Industry Reform Act and positioning themselves for long-term growth.
