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MERGERS AND ACQUISITIONS IN NIGERIAN BANKING: IMPERATIVES FOR GLOBAL INTEGRATION

ADEGBIE, F. F. and Adeniji, A.A (2010) MERGERS AND ACQUISITIONS IN NIGERIAN BANKING: IMPERATIVES FOR GLOBAL INTEGRATION. Journal of Economy and Society, 10 (1&2). pp. 149-172.

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Abstract

Mergers and acquisition is a contemporary issue culminating the effect of recapitalisation of banks in Nigerian financial system, sequel to the increase of the capital base of banks from N2billion to N25billion through consolidation mainly by mergers and acquisition and management buy-out. Nigerian economy has been witnessing instability and depression in all the segments that make up the system, the financial sector not spared. The objective of this paper is to identify specific reasons for Central Bank of Nigeria directive on bank recapitalisation, which has resulted into mergers and acquisitions. The paper is both theoretical and empirical The paper identified that previous reforms never resulted into the strengthening of the banks, but rather failures and non-performance. It further analyses strategies adopted by banks to raise fresh capital from the capital market, and the embracing of mergers and acquisition including management buy-out to bring economic gains to Nigerian economy, and benefits of business growth, technological revolution, efficiency theory, tax benefits, botster asset backing, improved quality earnings, stable liquidity to the financial system, and capability to integrate into the global banking system. The paper analyzed the post-merger effect, which is the ability of each bank to develop strong organizational capacity to employ good resources for strong competitive advantage in the Nigerian economy and integration into African and Global economies. The analysis of the results of field survey was shown with due recommendations for the success of consolidation exercise.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Dr. Anthonia Adeniji
Date Deposited: 25 Mar 2015 14:59
Last Modified: 25 Mar 2015 14:59
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/4214

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