IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 2 NO. 2 2017

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An Evaluation of the Economic Characteristics of Banks Involved in the Merger and Acquisitions in Nigeria Post Consolidation Era (1999-2014)

Oyedele Oloruntoba Stephen, Emerah Ajevata Apollos and Oyedele Adenike Felicia

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Abstract

The period 1999-2014 was characterized by banking reforms in the Nigerian economy. These reforms have affected the banking sector in several dimensions. Banks recapitalized, some merged while others managed to survive standing alone. No doubt, there have been changes in the economic characteristics of the banks that emerged from the consolidation exercise. This work is aimed at determining the economic characteristics of banks involved in the Merger and Acquisitions in Nigeria in the post consolidation era. An economic model was developed and tested using ordinary least squares regression. Based on the findings, the study concluded that mergers and acquisitions have significant impact on socio-economic characteristics of money deposit banks involved in mergers and acquisition in Nigeria. It was recommended that the expenditure on the acquisition of Information Technology particularly the Automated Teller Machine (ATM) be increased. Equally, it was suggested that banks should embark on aggressive mobilization of funds from the public. While regulatory authorities should intensify efforts towards effective monitoring to ensure greater financial intermediation.

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