AN EVALUATION OF THE EFFECT OF MERGER AND ACQUISITION ON THE PERFORMANCE OF NIGERIA BANKING SECTOR (Case: United Bank of Africa, PLC) (MANAGEMENT PROJECT TOPICS AND MATERIALS)
ABSTRACT
This study was designed to study the effect of Merger and Acquisition in the Bank-ing Industry in Nigeria with special reference to United Bank of Africa, Plc.
The research work tried to reveal whether the introduction of merger and acquisi-tion can improve the banking industry profitability and provide an engine for eco-nomic growth and sustainable development.
The thesis will review the background of the Nigerian Banking sector since incep-tion as well as, examine the efficacy of merger and acquisition of banks in Nigeria.
Moreover, questionnaire and personal observation would be adopted as part of methodology necessary to retrieved required data from United Bank Of Africa, Plc. Necessary literatures were also reviewed to complement the thesis while the main body would focus on the effect of merger and acquisition to United Bank Of Africa, Plc. Recommendation and conclusion are the last write-up of the whole study; it would be recommended that the government and regulatory authorities devise method of monitoring the activities of merging banks and stands as checks and balances to non-compliance of their laid down regulations.
1Â INTRODUCTION
The banking sectors is crucial to the survival of any economy and in order for the banking industry to achieve its objectives, the industry must be stable, safe and sound.
In Nigeria, the rapid increase in the number of bank failure has reached an un-precedented level and as a result, the regulatory authorities have adopted meas-ure aimed at ensuring safely and soundness of the banking industry. Such meas-ure includes: Holding actions, assumption of management control as well as out-right liquidation among others.
Merger and Acquisition strategies are gaining more popularity because of the globalization, deregulation of multiple industries in many different countries, and favorable legislation, the number and size of domestic and cross-border merger and acquisitions has increased significantly. (Hitti , Ireland , and Hoskisson , 2005, 225.)
