Sovereign Trust Insurance Plc has remitted N1.5 billion to the Central Bank of Nigeria (CBN) as its statutory capital deposit, becoming one of the insurance firms complying with new regulatory requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The development comes as insurance operators intensify efforts to meet fresh capital and compliance obligations designed to strengthen the financial resilience of the industry and improve policyholder protection.
In a disclosure filed with the Nigerian Exchange (NGX) and signed by Olusegun Bankole, deputy general manager and head of corporate communications and investor relations, the company said the remittance was made in line with a directive issued by the National Insurance Commission (NAICOM), requiring all insurers to lodge 10 percent of their regulatory minimum capital with the CBN.
As a non-life insurance company, Sovereign Trust Insurance said it successfully deposited the required N1.5 billion before the May 31, 2026 deadline stipulated by the regulator.
The insurer described the achievement as a major milestone in its ongoing recapitalisation programme and a demonstration of its commitment to maintaining a strong financial position while adhering to evolving regulatory standards.
According to the company, the statutory deposit requirement forms part of broader reforms introduced through NIIRA 2025 to enhance the stability, capacity and competitiveness of insurance operators in Nigeria.
The company noted that the successful remittance reinforces its readiness to align with the changing regulatory landscape and positions it to take advantage of emerging opportunities within the sector.
The compliance milestone comes as Sovereign Trust Insurance pursues additional capital raising initiatives to strengthen its balance sheet.
The insurer recently launched a rights issue aimed at raising N5 billion from existing shareholders through the sale of 2.51 billion ordinary shares of 50 kobo each at N2.00 per share. The offer, which opened on May 4, 2026, is being made on the basis of three new ordinary shares for every 17 ordinary shares held as of March 17, 2026, and is expected to close on June 10, 2026.
Lucas Durojaiye, managing director and chief executive officer of Sovereign Trust Insurance Plc, said the successful fulfilment of the statutory deposit requirement underscores the company’s commitment to regulatory compliance and financial soundness.
“The fulfilment of the statutory N1.5 billion deposit requirement with the Central Bank of Nigeria represents another important milestone in our growth journey and demonstrates our unwavering commitment to regulatory compliance and financial solvency in competing favourably in the Nigerian insurance space and beyond,” Durojaiye said.
He added that the development would further boost confidence among shareholders, policyholders, business partners and other stakeholders in the company’s ability to meet its obligations while creating sustainable value.
According to him, Sovereign Trust Insurance remains focused on building a stronger and more resilient institution through improved service delivery, expanded market reach and sustained contributions to the development of the Nigerian insurance industry.
Durojaiye further stated that the company would continue to pursue strategic initiatives aimed at strengthening its capital base, improving operational efficiency, driving innovation and delivering enhanced insurance solutions to customers across the country.
The latest compliance move highlights the increasing pace of adjustment within Nigeria’s insurance industry as operators respond to reforms under NIIRA 2025, which seek to deepen financial stability, strengthen consumer confidence and position insurers for long-term growth in a more competitive market.
Sovereign Trust Insurance said it remains committed to meeting all regulatory obligations within stipulated timelines while maintaining its focus on prompt claims settlement, sound corporate governance and customer-centred service delivery.
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