STI Deposits N1.5bn Statutory Capital With CBN

By Sola Alabadan

Sovereign Trust Insurance Plc has made the statutory deposit of N1.5 billion with the Central Bank of Nigeria (CBN) as a non-life insurance company, ahead of the recapitalisation deadline.
This is in compliance with the directives of the National Insurance Commission (NAICOM) to all insurance companies to make the statutory deposit of 10 percent of regulatory minimum capital with the CBN, in line with the provisions of the Nigerian Insurance Industry Reform Act 2025 (NIIRA).
The achievement marks a significant milestone in the company’s ongoing recapitalisation programme and further demonstrates its commitment to maintaining a strong financial foundation, enhancing policyholder protection, and complying with all regulatory requirements governing the Nigerian Insurance Industry.
The underwriting firm opened its Rights Issue on May 4, 2026 for existing shareholders of the company with the aim of raising additional capital to the tune of N5 billion from the sale of 2,510,848,144 units of ordinary shares of 50 kobo each at N2.00 per share on the basis of 3 new ordinary shares for every 17 ordinary shares held as at the close of business on March 17, 2026. The Rights Issue is expected to close on June 10, 2026.
The successful remittance of the statutory deposit demonstrates Sovereign Trust’s readiness to align with evolving regulatory landscape aimed at strengthening the capacity, resilience, and competitiveness of Insurance operators in Nigeria.
Commenting on the achievement, the Managing Director of Sovereign Trust, Dr. Lucas Durojaiye, has this to say. “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.
This achievement further strengthens the confidence of our shareholders, policyholders, business partners, and other stakeholders in the company’s ability to consistently meet its obligations while creating sustainable value for all.
As an organisation, we remain focused on building a stronger and more resilient institution, improving our service delivery capabilities, expanding our market reach, and contributing meaningfully to the development of the Nigerian Insurance Industry.”
Durojaiye further noted that the company would continue to pursue strategic initiatives aimed at strengthening its capital base, enhancing operational efficiency, driving innovation, and delivering superior insurance solutions to its growing clientele across the country.
Sovereign Trust Insurance remains committed to meeting all applicable regulatory requirements within the stipulated timelines, while maintaining its reputation for professionalism, prompt claims settlement, sound corporate governance, and customer-centric service delivery.