THE ROLE OF NIGERIA DEPOSIT INSURANCE CORPORATION (NDIC) IN MANAGING FINANCIAL DISTRESS
ABSTRACT
This study was essentially conceived to evaluate the role of the Nigeria Deposit Insurance Corporation in managing financial distress. The study made use of brilliant writers, professionals and they constituted the literature reviews of the study the population of the study was comprised of the bank staff and bank customers of first bank of Nigeria plc, Enugu and the NDIC officials in Enugu. The sample size was determined with the Yaro Yamani formula. Primary and secondary sources of data were used to test the formulated hypothesis. The findings of this research work revealed that NDIC operations contribute to the sanitization of banks. The study hereby recommends that the Federal Government of Nigeria should come to the aid of the Nigeria Deposit Insurance Corporation in the aspect of financing.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
Background of the Study     -    -    
Statement  of Problem     -    -    -    -
Objectives of the Study     -    
Research Questions    -    -    -    -    
Significance of the Study    -    
Scope of the Study     -    -    
Limitations of the Study     
CHAPTER TWO: LITERATURE   REVIEW
2.1   Background of the Nigeria Deposit Insurance Corporation (Ndic) -
          2.2 The Roles of NDIC in Sanitizing the Banking Sector        -        
          2.3 Supervisory Activities of the Nigeria Deposit Insurance Cooperaton     
2.4 Functions of NDIC-   -    -    -
          2.5 Supervisory Activities of the NDIC     -    -
           2.6 Off-Site Surveillance -        -    -    
          2.7 On-Site Examination-        -    -    -
           2.8 Meaning of Bank Distress-     -    -    -    -
           2.9 Implication and Consequences of Bank Distress on the Economy -    
            2.10 Techniques for Identifying Financial Distress in Banks
           2.11 Off-Site Analysis Programme    
            2.12 Management of Financial Distress    -
            2.13 Resolution of Bank Distress in Nigeria    -    
CHAPTER THREE: METHODOLOGY
3.1 Research Design    -    -    
3.2 Population of the Study    -
3.3 Sample Size Sampling Techniques    -    -    -    -
3.4 Instrument of Data Collection    -    -
3.4 Method of Data Presentation    -    
3.4 Method of Data Analysis    -    -    
CHAPTER FOUR:  DATA PRESENTATION AND ANALYSIS
4.1 Data Presentation     -    -    
4.2 Data Analysis    -
CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of Findings    -    -    -    -
5.2 Conclusion     -    -    -    -    -
5.3 Recommendations     -    -    -    
References    -     -    -    -    -    -    -    -
Appendix         -    -    -    -    -    -
Questionnaire         -    -    -    -    --
CHAPTER ONE
1.1    BACKGROUND OF THE STUDY
There have been significant progresses in the past years but more intensely during the last years aimed at the Nigerian financial sector through the implementation of distress resolution options. The Nigerian financial system is made up of financial institution rules and regulation instruments and market for effective intermediation. These financial institutions can be categorized into two major types; the deposit taking and the non-deposit taking types. An example of deposit belong financial institution is the commercial bank; whole for the non-deposit taking financial institution we have the financial basis.
The Nigerian financial institution can be referred to one that has been in a state of trauma. The banking industry wasn’t an exception. Financial distress non supportive investment, climate and political instability are the major problems that militate against effective banking system in Nigeria.
Financial distress is an old problem that has caused great difficulties to the Nigerian banking sector. The first incident of financial distress in the Nigerian financial sector was related during the 2015 economic depression. The commercial and industrial bank which was the first indigenous bank controlled b Nigerians was a victim of this distress and pain, of what bought distress into the Nigerian banking industry due to it’s demise. Factors that let to the banks liquidation included bad management, inadequate working capital, lack of trained manpower and poor accounting system. Those problems still hurt the industry to date.
Due to the introduction of the 1952 banking ordinance there was heavy distress in the Nigerian banking system which forced out about 51 banks out of the system. The ordinance and the CBN Act of 1958 brought the first ever regulation and sink into the
banking system which was formally a free banking era. The periods of years starting from 1986 – 1995 witnessed. The greatest ever recommended distress incidence in the Nigerian Banking industry. This was due to the operational issues involved in the introduction and implementation of the structural adjustment programme (SAP). During the SAP, the economy goal deregulated, to set banking license was easily and the sinking system was comprised of both efficient and inefficient banks.
Financial distress get it’s peak in the year 1986 when the government of Nigeria withdraw it deposits and that of the other public sector institutions from commercial banks and merchant banks. This action which the government took exposal the weak financial conditions of most banks in Nigeria.
The importance of a banking sector in any economy is derived from its role of financial intermediation, provision of an efficient payment system, and facilitation of the implementation of monetary policies.
Another role or essential role that is being carried out by banks, stated by Emekekwe is the role of transferring savings from the surplus economy units to deficit economic units into will utilize these savings in generally investments. By this role the savings surplus economic units would in process have earned income in the form of interest on these funds. That could have been lying idle. It is against this background that they are lettered financial intermediations.
The problems of financial distress in banks lead to using many reactions and actions taken by the federal government its agents in financial matters (the central bank of Nigeria).
Some of the actions taken include the termination of the structural adjustment programme (SAP) in 1991 following the enactment of bank and other financial institution decree (Bofia) No. 25 of 1991, the establishment of the Nigeria Deposit Insurance Corporation (NDIC) to cushion the loss against further bank fashions. There was also the introduction of the prudential guiding in the year 1990.
The federal government and the CBN also adopted recapitalization and stringent regulation as tools to fight against reoccurring financial distress in Nigeria.
The objective of the research work is to identify the main cause of distress in the Nigerian banking sector assess the NDIC sets out modulates for fighting and managing financial distress in the banking system.
The performance of the NDIC in managing financial distress in the banking industry would also be assessed by the researcher.
Banking distress possesses a lot of threat and losing of confidence in the industry. Despite the entire attempt made by the supervisory authorities the problem still remains the same. The problem of distress in the Nigeria banking industry has been a major issue to all the stakeholders, investors in the economy and also to the business world at large.   
Adekanmbi Micheal Oluwakayode, (2017) Many problem facing the corporation in its distress management functions shall be discussed as well as suggestions on better options for achieving the aim of it’s establishment. This piece of work has much to tell about the NDIC and its roles in managing banking distress.
1.2    STATEMENT OF THE PROBLEM
Financial distress in an economy always has a lot of trouble and numerous problems associated with it. When an economy is in distress, labour and government suffers, likewise income per capital goes down and then comes economic depression. In the banking and other financial sector the situation goes the same way. Banks do not meet up with depositors demand’s in period of financial distress. Borrower’s and investor’s finds things difficult since credit will be hard to obtain.
During 2015 when the issue of financial distress was the order of the day in most Nigerian banks, a lot of liar was erupted and argument was created in the banking sector and the entire economy.
Because of financial distress in the Nigeria economy, most depositors choose to invest. Their money in tangible assets live buildings and this continual a major problem to effective financial intermediately roles of the bank.
Another problem is the issue of the amount insured. The maximum courage of N50,000 per depositor in the event of bank failure is generously considered not enough by the general public. Most depositors do loose huge sums especially the uninsured depositors and the posses a great problem.
1.3    OBJECTIVE OF THE STUDY
The board objective of this study is to determine the role of Nigerian deposit insurance corporation (NDIC) in managerial financial distress. The specific objective of this study is as follows:-
To assess the effects of bank distress in the Nigerian economy
To assess the contribution made by the NDIC in sanitization of banks.
1.4    RESEARCH QUESTION
    The base on the research objective formulated in this study, following research questions is formulated for the purpose of this study:-
 Does banking distress have effect on Nigerian economy?
To what extent has NDIC contribute to the sanitization of banks?
 1.5    SIGNIFICANCE OF THE STUDY
The significance of the study is derived from the significance of a proper banking system in an economy. The threats of financial distress have never gone out of the minds of the banking public especially the depositors, therefore the level of NDIC commitment into
protecting their interest in banking business are looked into severely since they are always the worst victims of banking failure. Finally, the study would not fail to x-ray the areas where much is expected of the Nigerian deposit insurance corporation so that the federal government would know.
1.6    SCOPE OF THE STUDY
The scope of this study covers the role of Nigerian deposit Insurance corporation (NDIC) in managing financial distress (2014-2018).
1.7    LIMITATION OF THE STUDY
    The researcher spent time and money in search of current issues. Other constructions of the study include; the unwillingness on the part of the bank managers and NDIC officials to relate crucial issues concerning financial distress in banks and NDIC operations as a way to protect the banking industry and NDIC from further industry which such a disclosure may cause.
    To this end certain situation information needed for the works were not disclosed by the relevant authentic concerned for fear of having negative result on the banking sector and the economy out large. More so, the questionnaires are the man tool used for primary data collection. This tool made it easy for the respondents to work independently since most of them
There are many factors that act as constraint to the effort of the researcher in the course of writing this project. Most prominent of the factors are:
TIME: The research work is a big task and as such requires time and energy, which was not on the researcher’s side.
FINANCE: This is another limiting factor. Due to limited financial resources available, the researcher cannot procure all the needed material is for this project.