Mergers and acquisitions in the banking industry in industrial in Nigeria (Case study of selected banks in Oyo State)

Abstract

Mergers and acquisitions in the Nigerian banking industry are reforms strategies used by the apex bank, Central Bank of Nigeria (CBN) to reposition the nation’s banking industry. Mergers and acquisitions occurred as a result of recapitalization and consolidation of banks in Nigeria. This study assessed the effects of mergers and acquisitions in the banking industry in Nigeria. The research sought to find out how mergers and acquisitions have positively improved bank efficiency and competitiveness since the Nigerian bank recapitalization and consolidation of 2005. Primary and secondary data were used for this study. Primary data were sourced through questionnaire, purposively administered on 75 respondents from Skye Bank Plc. and Access Bank Plc. in Oyo state. Secondary data were obtained from banks financial records and internet. The descriptive statistics (frequency and percentage) were used for analysis of the data. The result of the analysis indicated that mergers and acquisitions have impacts on the banking industry in Nigeria. The findings further revealed that mergers and acquisitions increased the bank operating efficiency and competitiveness The study concluded that with good corporate governance in place, the Nigerian banking industry can greatly benefit from mergers and acquisitions. This is because, with the mergers and acquisitions banks will be more financially efficient, more competitive and this in turn will improve banking industry performance and the country’s economy.