The Use of Public Relations Strategies by Commercial Banks during the Recapitalisation of the Banking Sector in Nigeria (2004 – 2009)

Abstract

The recapitalization exercise of 2004-2009 went down in history as the most strategic policy in the annals of Nigerian banking sector. The policy was initiated to address the insolvency of banks and forestall future possibilities of financial distress. This saw the merger and acquisition of many banks. As a desperate moment for many banks, survival strategies were employed. One of such strategies was the use of public relations to build corporate image of survival and fitness. Although some of the public relations strategies employed by the banks were quite impressive, experts have continued to wonder the effect such strategies had in the survival of so many banks. Hence this study was initiated to empirically ascertain the effectiveness of public relations strategies employed by the banks during the recapitalization exercise of 2004-2009. In conducting this study, Explanatory mixed method design was employed to generate both quantitative and qualitative data through survey and in-depth interview methods. The population of this study covered the banks’ Public Relations/Corporate Communications staff in Lagos State who were responsible for the conceptualization, design and execution of the P.R. strategies and the banks’ customers whom these strategies were majorly targeted at. The study was anchored on the Hunt-Grunig Public Relations Boundary Role Model and Melvin Sharpes Behavioural theory. After analysis using SPSS, findings revealed that commercial banks, to a moderate extent, applied public relations strategies during the recapitalization exercise and banks mostly used the mass media and SMS to reach out to both the internal and external publics during the recapitalisation exercise. Findings also showed that the banks’ public relations activities, to a moderate extent, influenced customers’ confidence on the banks during the recapitalization exercise. The strategies also helped the image of the banks. However, inadequate funding was the major challenge of the public relations / corporate communications staff regarding the implementation of their Public Relations strategies during the recapitalization exercise.  Based on these findings, it was recommended that commercial banks must maximally harness the potentials of Public Relations to secure and consistently maintain a good image. This implies that the banks should effectively deploy Public Relations to engender increased level of employees and customers’ confidence.

Keywords: Bank, Recapitalization,Public Relations,Corporate image,Customers’ perception