This study examined the impact of the Nigeria Deposit Insurance Corporation (NDIC) on financial system stability and bank failure mitigation in Nigeria. Specifically, it assessed the effects of NDIC’s regulatory and supervisory role, intervention strategies, and public awareness initiatives on financial system stability. The study adopted a quantitative cross-sectional survey design and collected primary data through a structured five-point Likert scale questionnaire administered to 400 respondents drawn from an estimated population of 650,000 banking stakeholders, including bank staff, customers, NDIC/CBN officers, and financial safety-net participants in Lagos, Abuja, and Port Harcourt. Data were analyzed using descriptive statistics, reliability analysis, Pearson correlation, and multiple regression analysis with STATA version 17. The results revealed that NDIC’s regulatory/supervisory role had a positive and significant effect on financial system stability (B = 0.421, t = 6.68, p < .001). NDIC’s intervention strategies also had a positive and significant effect (B = 0.375, t = 6.47, p < .001), while public awareness of NDIC significantly influenced financial system stability (B = 0.296, t = 4.17, p < .001). The model explained 61.3% of the variation in financial system stability (R² = .613; F = 78.21, p < .001). The study concludes that NDIC plays a critical role in strengthening depositor confidence, reducing systemic banking risks, and enhancing the resilience of Nigeria’s financial system. It recommends stronger legal, institutional, and technological support for real-time surveillance, faster depositor reimbursement, transparent claims management, and expanded public awareness campaigns, particularly among underserved banking populations
Zakari et al. (Mon,) studied this question.