MERGER AND ACQUISITION AS A STRATEGY FOR GROWTH IN NIGERIAN BANKING INDUSTRIES (A CASE STUDY OF SOME SELECTED BANKS IN ENUGU MUNICIPAL)

ABSTRACT

This research work is aimed at ascertaining the various positive impart which merger and acquisition has contributed in banking growth in Nigeria banking industries and prospects in the banking world using access bank in Enugu state as a case study. The importance of merger and acquisition will be apparent when considering the fact from the data that is gathered in the course of this work, from the related literature as well as, from interviews and discussions. Also questionnaires were distributed equally and collected which yielded or revealed that merger and acquisition played a positive role for growth in Nigeria banking industries. The information supplied by the Chief accountant in access bank, Enugu state contributed to the success of the exercise. The statistical analysis that used in the study includes the hypothesis testing in which the questionnaire is analyzed under their related hypothesis and the use of chi-square test of homogeneity. It was also discovered that it is important among other groups of professionals needed for this implementation of the exercise. Therefore, they formed the pillar on which any successful establishment rests upon. We recommended that merger and acquisition should be given a free hand in banking industries in order to enhance growth in banking industries in Nigeria. The banking reform pronounced on the 6th of July, 2004 had been a major wave towards a diversified, strong and reliable banking sector in Nigeria. This paper examined the mega banks by evaluating their performance four years after the consolidation exercise in Nigeria. It examined the impact of consolidation on performance and considers if there had been considerable improvement on their profitability, liquidity and solvency. In this study, we analysed the performance ratio of a sample of thirteen (13) mega banks. A descriptive analysis of these performance ratios was carried out. Correlation Analysis was used to test the impact of the consolidation on the performance measurement parameters. We found that, on average, bank consolidation resulted into improved performance. The paper therefore suggests that the bank management should embrace broad product strategies, which could help in generating more income for the banks. They should also embrace diversification and financial innovation in order to produce new products and services.

Keywords: Consolidation, Bank reforms, Performance measures, Ratios

JEL Classification: G21, G28, G34

 

TABLE OF CONTENTS

Title page ……………………………………………………………………i

Certification ……………………………..………………………….……..ii

Approval page……………………………….…………………………iii

Dedication ……………………………………………..…………………IV

Acknowledgement ………………….………….……………………..v

Abstract ………………………………….………….…………………...vii

Table of content ………………………………………………………viii

CHAPTER ONE: INTRODUCTION

1.1 Background to the study

1.2 Statement of the problem

1.3 Objectives of the study

1.4 Significant of the study

1.5 Scope and limitation of the study

1.6 Research question and hypothesis

1.7 Definition of terms

CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL FRAMEWORK

2.1 Introduction

 2.2 Literature review

 2.2.1 Definition of mergers and acquisitions

2.2.2 Types of mergers and acquisitions

 2.2.3 Stages of mergers and acquisitions

 2.2.4 The objectives of Bank merger and acquisition

 2.2.5 The motive for Bank merger and acquisition

 2.2.6 Procedures for obtaining Approval for merger and acquisition.

 2.2.7 The role of SEC, CBN, NSE and CAC as Regulatory Authorities in merger and acquisition

 2.3 History of Nigerian banking industry

 2.3.1 Regulation of Nigerian banking industry

 2.4 Theoretical framework

CHAPTER THREE: RESEARCH METHODOLOGY

Population

The sample and sampling procedure

Source of data collection

The nature and administration of research instruments

The method/ methods used in the analysis of data

CHAPTER FOUR:

PRESENTATION & ANALYSIS OF DATA

Data presentation

Analysis of data

Test of hypothesis

CHAPTER FIVE: 

Summary of findings

Conclusion

Recommendations

Suggestions for further studies

 Reference

Questionnaire

appendix