Impact of Corporate Governance on the Operations of the Nigerian Deposit Insurance Corporation (NDIC)

Abstract

Corporate governance in the NDIC is a practical framework, supporting the corporation to achieve it set operational objectives through its strategic plans in line with the standards of International Association of Deposit Insurance (IADI) particularly with regard to speedy reimbursement of approved depots guarantee sum to victims of failed financial institutions within the specified period. This has becomes a challenge partly due to prolong debate by the National Assembly over the revised NDIC Act which contained a new framework and or delay in dispensing justice by the Nigerian judicial system. These called for continuous review
of the NDIC’s corporate governance policy using stakeholder theory with a view to examine the impact of corporate governance framework on NDIC’s performance. To achieve these objectives a survey research design was employed using 1644 population with a sample size of 400 respondents selected using Taro Yamane (1967) formula and complemented by secondary data. Cluster sampling and purposive sampling techniques were used to analyse data. The result indicated that the framework as tied to the corporate strategic plans has significantly impacted on the corporate commitment to achieving core operational mandates, but neither effectively increase the level of public awareness, nor ensure efficient payment system to victims of failed insured institutions within the required 90 days. The study recommends more effective awareness campaign through different medium for brother financial inclusion. Also, the National Assembly should expedite action toward assenting the reversed NDIC Act and establish a special court to handle only matters relating to failed financial intuitions in Nigeria which should guide the corporate governance framework for easy cascading to various department and units for optimum performance.