THE CONTRIBUTIONS OF INSURANCE IN THE MANAGEMENT OF RISKS IN NIGERIA BANKING SECTOR: NIGERIA DEPOSIT INSURANCE CORPORATION AS A CASE STUDY

This study investigated “the contributions of insurance in the management of risks in Nigeria banking: Nigeria Deposit Insurance Corporation as a case study”. Relevant data were drawn from staff of Bauchi state NDIC zonal office. Bauchi state NDIC zonal office encompasses the administrative region that includes Plateau state. This makes it an appropriate and relevant choice for collecting data that reflects the experiences and perspectives of stakeholders in Plateau state. Descriptive survey research design was adopted for the study and using census sampling technique. Using a well-structured research questionnaire, 100 staff of the zone served as both population and sample for the study. Descriptive and quantitative statistical method of data analysis was used to analyze the study of this research and chi-square was used to test the research hypothesis. The result of the findings revealed that insurance is a suitable risk transfer mechanism for managing risks. Regulatory Act of NDIC have assisted in the management of risks. The level of insurance practiced have a positive relationship with the management of risks and NDIC structures have a positive relationship with how well they manage risks in the Nigerian banking sector. Based on these findings, the study recommended that Nigerian banks should enhance their utilization of insurance products tailored to their specific risk profiles. NDIC should continually update and strengthen the Regulatory Act governing them. Banks should expand the scope and coverage of deposit insurance provided by the Nigeria Deposit Insurance Corporation (NDIC). Finally, policymakers and regulatory authorities should continue to enhance the capacity and scope of NDIC's frameworks.