Effect Of Merger And Acquisition On The Performance Of Commercial Banks In Nigeria

ABSTRACT

Capitalization and other banking policy have actually lead to the adoption of several strategies and techniques by commercial banks in Nigeria in other to meet up with CBN demands and banking policies one of such strategy is merger while another is acquisition. This project is centered on the effect of merger and acquisition on performance of commercial pbanks in Nigeria. However this particular work is centered on acquisition and adopted one of the most co temporally banks in Nigeria that is Eco bank. Its financial statement pre and post acquisition was adopted and the financial ratios computed and compared to ascertain the difference or relationship between performance indicators. A panel survey descriptive methodological design was adopted and secondary data was used after analyses and interpretation, it was discovered that they were relative durance in the pre and post performance indicators like ROCE, EPS, and the others. Thus, this work concluded that there is a positive effect of merger and acquisition on the performance of commercial banks in Nigeria and further recommended that merger and acquisition should be adopted as a banking policy for failing banks, and as a capitalization strategy.