Abstract
This study examines the role of the Nigeria Deposit Insurance Corporation (NDIC) in promoting sound risk practices and enhancing financial stability within Nigerian banks. Using a mixed-methods research design, data were collected from 367 respondents through structured questionnaires and semi-structured interviews with bank officials, NDIC staff, financial experts, and community leaders. Quantitative analysis employed descriptive statistics, correlation, and regression techniques, while qualitative data were analysed thematically. The findings reveal that NDIC’s risk management framework, particularly the Differential Premium Assessment System (DPAS), regulatory compliance, and supervisory interventions, significantly influence banks’ adoption of sound risk practices, enhance depositor confidence, and promote financial inclusion. However, the study also identifies gaps in public awareness, technological adoption, and internal risk culture that limit the full effectiveness of NDIC initiatives. Regression analysis shows that regulatory compliance, DPAS premiums, bank profitability, and size significantly predict the adoption of risk management practices. Qualitative insights highlight the need for improved stakeholder engagement, targeted awareness campaigns, and advanced risk-detection tools to address emerging challenges such as fraud and cyber threats. The study concludes that while NDIC’s framework is practical, more vigorous enforcement, education, and technological innovation are essential to bolster systemic stability and depositor trust.