ABSTRACT

Considering the problems evident in the Nigerian Financial Sector, which has made it impossible for growth and profitability to be realized in the banking sector, it therefore requires an urgent solution that will help position the Nigerian Financial Sector to be proactive and stand competitive in the globalize economy. These problems in the Nigerian banking sector which includes the inability to meet the N25 billion capital base required by the CBN, bank distress, bank crises, insecurity of depositors fund, poor capital base, unreliable : statements, inefficient management, inability to compete favorably in the worlds financial market, lack of growth and profitability in the banking sector, calls for urgent intervention in the sector. ii is therefore against this background that this study on mergers and acquisition as a survival strategy in the Nigerian Financial sector is considered worth while. Among other problems, the major problem of this study are:- (i)whcther mergers and acquisitions will be a survival strategy for Nigerian banks.(ii) Whether mergers and accluisitions can strengthen tile Nigerian banks to ensure safety of depositors fund. (iii) Whether mergers and acquisition will help the Nigerian banks to meet the N25 billion capital base required by the CBN. The two major hypothesis stated in this study were: the Mergers and acquisitions do not lead to growth in the financial sector. I-li: Mergers and acquisitions lead to growth in the financial sector. The Mergers and acquisitions do not increase profitability in the financial sector. s and acquisition increase profitability in the financial sector. Time maj or research questions used for this study includes the following:- (i) Arc mergers and acquisitions a survival strategy in N igeriall banks.? (ii) Would mergers and acquisitions help in the prevention of' bank crisis in Nigerian financial sector? Two banL were selected for this study, these includes: UBA and Spring Bank For this study both secondary and primary' data were used and the chi-square techniques was used to test the hypothesis. The population for this study includes the management stall' of the two bank groups, while the sample size used for this research work is 20 persons from the management staff We found out that mergers and acquisitions can lead to growth in the financial sector. Mergers and acquisitions can increase profitability in the financial sector. And that, mergers and acquisitions can strengthen the Nigerian Banks to be strong, reliable and stand competitive in the worlds financial market. Among other recommendations, we recommend that mergers and acquisitions is a survival strategy in the Nigerian financial sector.