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  urgent   solution   that  will  help  position   the  Nigerian  financial sector   to  be  proactive  and  stand   competitive   in  the  globalizc  economy.    These problems   in the  Nigerian  banking  sector   which   include;  the  inability   to  meet  the N25  billion   capital   base   required   by  the  Central   Bank   of  Nigeria,   bank   distress, bank crisis,    insecurity     of   depositors   fund,   poor   capital    base,    unreliable   bank statement,    inefficient  management,  inability   to  compete  in  the  world's    financial. market  calls  for intervention    in the sector.  ·Eco  bank  and  UBA,P.lc were  selected   for this  study   for  the  study,   both   primary   and   secondary  data  'were   used   and  a  chi-

square  technique  was  used  to  test  the  hypotheses.  The  sample   size  used  for  this research   work  was   l 00  persons  from  the  personnel   crew   of  the  banks.   Fromthe analysis   carried   OL1t   we  found   out  that   mergers   and  acquisitions    can  ~elpjp.  the prevention   of bank  crisis       the  Nigerian  financial   sector,  Mergers and  acquisitions acquisition    guarantee  global   acceptability   of  the  Nigerian   .banks   to  enable   them

.    maintain    strong    capital    base,    Merger    and   acquisitions  ~re~~als   strength   and weaknesses of  the Nigerian   banks.   Among   other  recommendations,  the  researcher recommended    that  mergers   and  acquisitions  is  a survival   strategy   in the  Nigerian Financial  sector.

CHAPTERONE:INTRODUCTION

1.1 Background of the study ------------------------------------------------------------------------ 1

1.2 Statement of the problem -----------------------------------------------------------------------2

1.3 Objective of the study -----------------------------------------------------------------------------3

1. 4 Research Questions --------------------------------------------------------------------4

1. 5 Research Hypotheses -----------------------------------------------------------------------------4

1. 6 Significance  of the study-------------------------------------------------------------------------4

1. 7 Limitations of study -------------------------------------------------------------------------------5

CHAPTER TWO:  REVIEW  OF RELATED  LITERATURE

2 .1 The concept of Merger and Acquisition -------------------------------------------------------6

2.2 Types of Merger and Acquisition---------------------------------------------------------------  7

2.3 Motives of Merger and Acquisition  ------------------------------------------------------------  8

2.4Reasons for Merger and Acquisition-------------------------------------------------------  9

2.5 Importance ofMerger  and Acquisition-------------------------------------------------------10

 2.6Component  of model of acquisition------------------------------------------------------------1  l

2.7 Statutory approving  bodies ----------------------------------------------------------------13

2.8 Consequence of merger ---------------------------------------------------------------- 15

2.9  Economic   advantages  of Merger  and  Acquisition   ----------------------------------------15

2.10   Problems   associated   with  Merger  and  Acquisition------------------------------------17

2.11  Consolidation   reveals  banks'   weaknesses---------------------------------------17

2.12 Accounting for Merger and Acquisition -------------------------------------------------19

2.13 Legal formalities associated with merger---------------------------------------------------19

2.14  Strategies to be applied for a successful consolidation----------------------------------20

2. 15 Consolidation Bank Groups -----------------------------------------------------------------22

CHAPTERTHREE: RESEARCH  METHODOLOGY

3 .1 Research design ------------------------------------------------------------------------------------23

3.2 Area of study ---------------------------------------------------------------------------------- 23

3.3 Population of the study----------------------------------------------------------------------------    23

3. 4 Samples as sampling techniques -------------------------------------------------------------23

3.5 Data analysis  procedure--------------------------------------------------------------------------25

CHAPTERFOUR:  DATA PRESENTATION,ANALYSIS    AND INTERPRETATION

4 .1   Data Presentation -----------------------------------------------------------------------------------3 2

4 .2  Analysis of Data and Interpretation  ------------------------------------------------------------34

4. 3 Test of Hypotheses  ----------------------------------------------------------------------------36

4. 4 Interpretation of Result---------------------------------------------------------------------------39

CHAPTER FIVE: SUMMARY,  CONCLUSION  AND RECOMMENTATIONS

5 .1     Summary of findings--------------------------------------------------------------40

5 . 2 Cone 1us ion -----------------------------------------------------------------------------------------4 1

5 .3 Recommendations ----------------------------------------------------------------------------------4l

5 .4 Suggestion for further studies ------------------------------------------------------------------43

REFERENCES  ---------------------------------------------------------------------------------------4      4

DEFINITION  OF TERMs  -----------------------------------------------------------------------4       7