Public Sector Management and Sustainable Development in Nigeria: Evidence from NDIC

The public sector is usually a stronghold for the economy, but recently in Nigeria, the sector has faced many hiccups due to neglect and poor management. The financial sector had its challenges ranging from instability to unsafe banking systems resulting in loss of depositors' confidence among others. The government managed the situation by establishing the Nigerian Deposit Insurance Corporation (NDIC) which is a parastatal under the Nigerian Ministry of Finance to supervise insured banks, among other roles. This study, therefore, examined NDIC- a public sector organization to ascertain its contribution to Sustainable Development (SD) in Nigeria. A survey method was used. The population comprised 25 insured Deposit Money Banks (DMBs) in Nigeria. Purposive sampling was used in selecting a sample size of 16 insured DMBs. Data were collected from a primary source through a questionnaire. Descriptive statistics were employed in data analyses while Ordinary Least Square (OLS) pooled regression and Two-Stage Least Square regression analyses were employed to obtain the estimates for hypotheses testing. A Durbin-Wu-Hausman test was employed to find out Endogeneity in OLS regression. Findings revealed that the effectiveness of NDIC in achieving SD in Nigeria is significant but the efficiency and economic impact of NDIC in achieving sustainable development are not significant. The study concluded that NDIC has effectively facilitated SD but has efficiently and economically failed. The study has made an expository impact on how public sector organizations can be utilized effectively to cushion the activities of the private sector enterprises to achieve SD.