BY NKECHI NAECHE-ESEZOBOR—Sovereign Trust Insurance Plc has successfully advanced its ongoing recapitalization programme by fulfilling its statutory deposit of N1.5 billion with the Central Bank of Nigeria.
The remittance was completed ahead of the May 31, 2026 deadline, following directives from the National Insurance Commission (NAICOM) requiring all domestic insurance companies to deposit 10% of their regulatory minimum capital with the apex bank.
The regulatory mandate aligns with the provisions of the Nigerian Insurance Industry Reform Act, 2025 (NIIRA), which seeks to strengthen the capacity, resilience, and competitiveness of insurance operators across the country.
This financial milestone comes on the heels of the underwriting firm opening a N5 billion Rights Issue on May 4, 2026, aimed at raising additional capital from existing shareholders.
The capital raise involves the sale of over 2.5 billion ordinary shares at N2.00 per share, issued on the basis of three new ordinary shares for every 17 shares held as of March 17, 2026.
The Rights Issue is expected to close on June 10, 2026, further bolstering the company’s capital restructuring efforts.
Dr. Lucas Durojaiye, Managing Director and Chief Executive Officer of Sovereign Trust Insurance Plc, stated that fulfilling the N1.5 billion deposit requirement represents a vital step in the company’s growth journey.
He noted that the achievement demonstrates an unwavering commitment to regulatory compliance and financial solvency, allowing the firm to compete favorably within the Nigerian insurance space and beyond.
According to Durojaiye, the timely remittance reinforces the confidence of shareholders, policyholders, and business partners in the company’s ability to consistently meet its long-term obligations while creating sustainable value.
Moving forward, the company remains focused on building a more resilient institution by pursuing strategic initiatives aimed at expanding market reach, enhancing operational efficiency, and driving product innovation.
Sovereign Trust Insurance Plc reiterated its commitment to meeting all applicable regulatory frameworks within stipulated timelines while maintaining its market reputation for professionalism, prompt claims settlement, and sound corporate governance.
