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By Henry Uche
Sovereign Trust Insurance Plc has strengthened its financial position by paying the required N1.5 billion statutory deposit to the Central Bank of Nigeria (CBN), ahead of the regulatory deadline set for insurance companies.
The deposit was made in compliance with a directive from the National Insurance Commission (NAICOM), which requires insurers to lodge 10 per cent of their minimum capital with the CBN under the provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
In a statement, the company’s Deputy General Manager and Head of Corporate Communications and Investor Relations, Olusegun Bankole, confirmed that the payment was completed before the May 31, 2026 deadline.
The move is part of Sovereign Trust Insurance’s efforts to strengthen its capital base, improve its financial stability, and assure policyholders of its ability to meet obligations.
The company is also currently raising additional funds through a rights issue targeted at existing shareholders. The offer, which opened on May 4, seeks to raise N5 billion through the sale of over 2.5 billion ordinary shares at N2 per share. The exercise is expected to close on June 10.
Speaking on the development, the Managing Director and Chief Executive Officer of the company, Lucas Durojaiye, described the successful deposit as an important milestone in the insurer’s growth journey.
According to him, meeting the regulatory requirement demonstrates the company’s commitment to financial strength, regulatory compliance, and long-term sustainability.
He said the achievement would further boost the confidence of shareholders, policyholders, business partners, and other stakeholders in the company’s ability to honour its commitments.
Durojaiye added that Sovereign Trust Insurance would continue to pursue strategies aimed at raising more capital, improving operational efficiency, expanding its market presence, and delivering better insurance products and services to customers across the country.
He reaffirmed the insurer’s commitment to complying with all regulatory requirements while maintaining high standards of professionalism, prompt claims settlement, good corporate governance, and customer-focused service delivery.
The successful completion of the statutory deposit places Sovereign Trust Insurance among the firms aligning with ongoing reforms designed to build a stronger, more resilient, and more competitive insurance industry in Nigeria.
