The study looked at how deposit insurance affects the risk of banks in Nigeria. They used data from the Nigeria Deposit Insurance Corporation and other sources to analyze the relationship between insured deposits, risk-based premiums, and nonperforming loans. The researchers found that insured deposits and risk-based premiums have a negative impact on bank distress, explaining 63.5% of the variation in nonperforming loans. This suggests that deposit insurance plays a role in keeping commercial banks stable. The study recommends using a more sophisticated premium assessment system and improving deposit protection to prevent bank failures.