ABSTRACT

Banks in Nigeria operate in a dynamic environment affected by myriad offactors. These factors affect the industry in variety ofways creating both opportunitiesfor the strong ones and distress for the feeble banks. However the need to ascertain the effect ofmerger and acquisition on the growth ofNigerian banks gave rise to this research. In analyzing the above research, the research adopted the following objectives; to examine the effect of merger and acquisition on the profitability ofBanks in Nigeria, to evaluate the effect oj~ merger and acquisition on return on asset of Banks in Nigeria andfinally to determine the effect ofmerger and acquisition on return on equity of Banks in Nigeria. The research adopted the use ofSPSS to analyze the objectives. Findings reveals that there is a significant different in profit after tax ofthe bank before and after acquisition, there is a significant change in return on asset ofthe bank before and after merger and acquisition andfinally there is a significant effect ofMerger and acquisition on return on asset of Banks in Nigeria. Sequel to the findings and conclusion, the researcher makes the followingrecommendations; Merger/acquisition is a strategic tool that must be cautiously applied and implemented. The maturation period ofthe merger must be allowed so that the financial records of the intending firms coming together can be properly scrutinized by the board of directors ofeachfirm and the regulatory agencies.