Effects of Consolidation on Banks Performance in Nigeria

Abstract

The study evaluated the effect of consolidation on bank performance in Nigeria. Data were collected from secondary sources. Two hypotheses were tested using ordinary least squares regression method. The implication of the findings showed that the consolidation of banks through mergers and acquisition has significantly influenced banks’ earnings; and that consolidation has not led to increase in capital adequacy ratio of banks. The study recommends that bank regulatory authorities should increase its oversight role so as to ensure that none of the banks has weak corporate governance and that there should be strong enforcement and effective regulatory oversight.

Keywords: Consolidation, NDIC, CBN, ROA, ROE