Impact of Merger and Acquisition on the Growth of Nigerian Banking Industry

The banking industry in Nigeria has long been experiencing one reform or the other since inception. These reforms were so, in order to put the sector, which is believed to be a stimulant of economic growth and development, in the right track financially. One of the reforms that is of much interest is the consolidation through mergers and acquisitions with particular reference to the 2004 – 2005 and 2011 – 2012 wave of mergers and acquisitions in the Nigerian banking industry. Although this reform brought with it some positive changes in the nature of improved economies of scales, financial stability and efficiency, certain adverse effects were observed. The aim of this work is to investigate the impact of merger and acquisition on the growth of Nigerian Economy using descriptive study and qualitative data. The paper found that there is long run impact of merger and acquisition on economic growth in Nigeria. The study also recommends that Policy makers should implement a law or statute that will protect the rights and interest of the employees during and after any event of mergers and acquisitions. Keywords: Merger, acquisition, economic growth, financial system, consolidation