ABSTRACT

The study examined the effect of mergers and acquisitions on banks' profitability in Nigeria using time series data from 1991 to 2017. The data used for the study was sourced from Central Bank of Nigeria statistical bulletin and Nigeria Deposit Insurance Corporation annual report. Mergers and acquisition was captured by dummy variables and total assets of banks, while banks' capital and profitability was measured using capital base and return on assets respectively. For the analysis, regression analysis technique was used. From the results of the data analysis, it was found that mergers and acquisition had no significant effect on banks capital, while the effect of banks' total assets on capital base was significant. 'I Also, mergers and acquisition had an insignificant effect on return on assets while the effect of total banks assets on return on assets was significant. Based on these findings, it was recommended among other things that individual banks experiencing distress should go into recapitalization and consolidation using mergers and acquisitions to enable them attain consistent growth in their total assets, profits, deposits and capital base.