IMPACT OF NIGERIAN DEPOSIT INSURANCE IN ENHANCING FINANCIAL INCLUSION AND PROMOTING SYSTEMIC STABILITY

This study investigates the impact of the Nigerian Deposit Insurance Corporation (NDIC) in enhancing financial inclusion and promoting systemic stability within Nigeria's financial sector. Employing a mixed-methods research design, the study collected quantitative data from 367 respondents via questionnaires and qualitative insights through interviews with key stakeholders, including NDIC officials, bank officers, financial experts, and community leaders. Findings revealed a significant positive correlation between public awareness of the NDIC and depositor confidence in the banking system, with NDIC awareness and trust emerging as strong predictors of financial inclusion. While the NDIC plays a crucial role in fostering trust and contributing to systemic stability through its supervisory mechanisms, the study identified persistent gaps in public understanding of its functions, particularly in rural areas. Key barriers to broader financial inclusion included a lack of trust, low financial literacy, accessibility issues, and high transaction fees. Furthermore, the evolving FinTech landscape presents new challenges, with user uncertainty regarding deposit insurance coverage for digital platforms. The study concludes that while the NDIC is instrumental in its dual mandate, a more targeted, collaborative, and adaptive strategy, encompassing enhanced public education, infrastructural advocacy, and clear policy extensions to digital finance, is essential to bridge existing gaps and fully realize its objectives across all segments of the Nigerian population.