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Impact of Merger and Acquisitions on the Performance and Growth of Banks in Nigeria

Year: 2026

Type: article

Abstract: This study examines the impact of mergers and acquisitions (M&A) on the performance and growth of banks in Nigeria, particularly in the context of the 2000-2010 banking consolidation reform. This study employs an ex-post facto research design using secondary data from the financial statements of selected Nigerian banks covering the period 2000–2010. The study evaluates key financial indicators such as Return on Assets (ROA), Return on Equity (ROE), and Capital Adequacy Ratio (CAR). Multiple regression analysis using the Ordinary Least Squares (OLS) technique is applied to examine the impact of mergers and acquisitions on bank profitability and capital adequacy. The findings reveal that mergers and acquisitions significantly improved banks’ earnings and operational efficiency but did not consistently enhance capital adequacy or shareholders’ returns. The study concludes while consolidation strengthens profitability and competitiveness, it is not a comprehensive solution to financial instability. Policy recommendations include improved regulatory oversight, corporate governance reforms, and strategic resource utilization

Source: Zenodo (CERN European Organization for Nuclear Research)

DOI: 10.5281/zenodo.22228673

Authors: Azeez, Abolade. M, Omoghene, Chukwuka .C, Okuma, N. C., PhD, LLB

Institution: Madonna University

Language: English

Topic: Banking stability, regulation, efficiency

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W7204936202

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