Deposit Insurance Scheme (DIS) is a key component of most financial systems worldwide. It is an active component of the financial safety-net put in place by governments as a means of intervening in the financial system because of the important roles it plays in protecting depositors. This research work is an attempt to ascertain whether or not NDIC, which is the agency responsible for administering the DIS in Nigeria contribute to the stability of the financial system. The survey research method was used in this study, while data were collected from both primary and secondary

 sources and analysed by the use of simple percentage method. The results from the analysis revealed that NDIC has continued to play an important role in promoting financial system stability in Nigeria. Based on the findings, the researcher recommends that NDIC be given adequate enforcement powers by the government to ensure compliance with the NDIC Act and also aggressive public awareness campaign about the benefits of DIS should be undertaken by NDIC and other relevant stakeholders in order to reduce the misconceptions and confusions about the roles of DIS in financial system stability.