Title page





1.0       Introduction

1.1       Background of the Study

1.2       Statement of the Problem

1.3       Objective of the Country

1.4       Research Hypothesis

1.5       Significance of the Study

1.6       Scope of the Study

1.7       Limitation of the Study

1.8       Profile of Nigerian Deposit Insurance Corporation (Ndic)

1.9       Definition of Terms.


2.0       Literature Review

2.1       Introduction

2.2       Function of Nigeria Deposit Insurance Corporation

2.3       Reason For Establish the Deposit Insurance Scheme in Nigeria

2.4       Achievement of the Nigerian Deposit Insurance Corporation (Ndic)

2.5       Challenges Facing the Nigerian Deposit Insurance Corporation (Ndic)

2.6       Prospect for the Scheme in Nigeria


3.0       Research Methodology

3.1       Introduction

3.2       Research Design

3.3       Re3search Instrument

3.4       Determination of Population

3.5       Sample and Sampling Procedure

3.6       Source of Data Collected

3.7       Procedure for Statistical Analysis or Data

3.8       Limitation of the Study


4.0       Data Presentation Analysis and Interpretation

4.1       Introduction

4.2       Analysis of the Respondent (Section a)

4.3       Analysis of the Respondent

4.4       Testing of Hypothesis


5.0       Summary, Conclusion and Recommendation

5.1       Summary

5.2       Conclusion

5.3       Recommendation






A bank deposit insurance scheme (DIS) is a financial guarantee to depositor particularly the small ones, in the event of a bank failure bank deposit insurance scheme developed out of the need to protect depositor, especially the uniformed, from the risk of loss and to also protect the banking system from instability occasioned by runs and loss of confidence The banking system has been singled out for this special protection because of the vital role banks play in the economy whether developed or developing. For a DIS to be effective in achieving the above objectives. It must be properly designed, well implemented by the fancy established to execute the scheme and well understood by members of the public {financial stability forum (FSF), 200}. A well designed DIS contributes to the stability of withdraw their insured deposits from banks following rumours about their financial conditions.

The establishment of Nigerian deposit insurance cooperation (NDIC) in 1988 heralded the introduction of an explicit deposit insurance scheme in Nigeria the Nigerian deposit insurance corporation is responsible for insuring the deposits at all banks and other deposit taking financial institutions licensed by the central bank of Nigeria (CBN). It also give financial and technical assistance in the interest of depositors, to banks in difficulties and in case a bank fails, it guarantee the payment of insured deposits 

The corporation assists the central bank of Nigeria (CBN) in the formulation and implementation of banking policies, with a view to ensuring sound banking practice among others. The scheme was meant to argument the existing safely not by protecting depositor, thereby boosting confidence of the banking public. It was also considered as an additional frame work to serve as a substitute to the government support policy (implicit insurance) hitherto in place. Prior to the establishment of the corporation, government was unwilling to let any bank fail no matter its financial condition due to fear of the potential adverse government support over the years. However, such direct supports (implicit insurance) could not be sustained under the structural adjustment programmed introduced in 1986 which among others, deregulated the economy towards market orientation, with the establishment of the Nigerian Deposit insurance corporation scheme (NDIC), the pain of bank failure unsuitable in a market environment were reduced to a minimum while moral hazard associated with direct government support was eliminated.


Some public opinions, particularly the press has been vociferous in the argument that the rate of proliferation in the banking industry is unmanageable and many new banks were bound to fail. it was like the regulatory authorities like Nigerian deposit insurance corporation (NDIC) were determined to avoid failure with of prudential guideline in additional to existing schedule to banking and which have indeed put the government at alert to avert any crises. All there are to assist the supervising authority in the critical evolution of banks financial position and facilitate the identification of problem in banking industry the problem facing banks also includes.  

High level of intensified competition due to the liberalization of industry. 

Increased systematic risk arising from increased off balance sheet transaction.

The problems of bank distress which result to loss of bring money by the bank customer. 

The prevalent of fraud in the banking industry. 

This research will address the challenges facing banking industry because of its tremendous impact on the economic growth of the country.


The financial section has not only become incessant to the growth of the nation’s economy but has also been in the increase in recent years. The objective of the research includes; 

To highlight some of the problem facing Nigerian deposit insurance corporation (NDIC) in its attempt to achieve economic growth through stability in the banking industry. 

To examine who checks and solution has been proffered by the Nigerian deposit insurance corporation (NDIC) against the problems. 

To examine the role of banking industry in economic growth.

To examine the prospects of Nigerian deposit insurance corporation (NDIC) in the performance of banking industry. 

To recommend measures to curb the problem militating against Nigerian deposit insurance corporation (NDIC) in performing their function. 


The study is based on the following hypothesis. 

Ho: There is no significant relationship between effective performance of Nigerian deposit insurance corporation (NDIC) and economic growth 

Hi: there is significant relationship between effective performance of Nigerian deposit insurance corporation (NDIC) and economic growth 

Ho: Nigerian deposit insurance corporation (NDIC) has no significant impact on the operation of the banking industry and economic growth. 

Hi: Nigerian deposit insurance corporation (NDIC) has significant impact on the operation of the banking industry and economic growth. 

Ho: banking stability has no significant influence on the economic growth in Nigeria. 


The significance of this study cannot be emphasized and can be considered in relation to the scope of study. This research can be visualized from the effects of distress in bank that lead to loss in banking customer’s deposits. 

However, banking distress has contributed immensely to the lack of economic growth in the economic of the nation.

The research will be tremdous assistance to policy market and practitioners. It will also provide to the existing literature in the field for researcher, and student in higher institution of learning can devoice various secondary sources from it. 


The scope of the study will cover the following areas. Reason for establishment of Nigerian deposit insurance corporation (NDIC). Its achievement and challenges facing Nigerian deposit insurance corporation (NDIC). The study will also be limited to inter continental bank plc, due to time constraint of the research. 


There are some limitation of this research though, there limitation do not have significant influence on the reliability of this study, there are: 

a. The time factor in thin the researcher’s disposal is inadequate to thoroughly carry out an in – deposit study 

b. Restricted access to information and

c. Financial constraints.


The NDIC was established by the federal government through decree No. 22 of June 15, 1988, but it started operation in February 1989. The 60 percent (60) of NDIC’s authorized capital of N 100 million while the federal government holds the remaining 40 percent (40). The NDIC was set up primarily to protect depositor from bank failure there by promoting public confidence in the banking industry. 

The affairs of the corporation are controlled by the board of directors of which the governor of the CBN is the chairman. The board also consist of a representation of the federal ministry of finance and economic development (FMEED), the managing director and two executive directors of the corporation. 


A. Economic Growth: this is defined as the rate of expansion of the national income or total volume of production of goods and services of a country 

b. CBN:Central bank of Nigeria: this is the Apex bank of the country. it is the bank of all banks of the nation CBN is a financial institution established by the law or constitution of the country. It is the bank of all banks of the nation CBN is a financial institution establish by the law or constitution of 

The country with the responsible or duty to manage and controlled all money matter of the nation 

c. NDIC: Nigerian deposit Insurance Corporation: this is the corporation that is responsible for insuring the deposit of all banks and other deposit taking financial institution licensed by central bank of Nigerian (CBN). It is the corporations that assist the CBN in the formulation and implementation of the banking policies with a view of ensuring sound banking practices among others. 

d. Depositors: -These are the person (s) that keep or save money into the bank. Deposits are also known as bank customers. 

e. Deposits: -These are thing or money which the depositions keep in the banks. Deposit are things that are been kept in the bank. 

f. Bank Stability:This defined as a process in which a bank is stable in its operation. This is also a process of bank regulation that is the operation or service of a particular bank is a regular or not having problem. 

g. Bank Failure:This the opposite of bank stability that is the process in which a particular bank is having problem in it operation or the system of a bank been liquidating it is the bank that is no more operating or that has uncounted financial problem.



RESEARCHWAP.COM is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • " is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • " is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing