Mergers and Acquisitions: The Nigerian Banking Consolidation Program

Authors

  • Chukwuma Agu African Institute for Applied Economics Nigeria, Nigeria
  • Damilola Olajide University of Aberdeen Scotland, United Kingdom
  • Divine Ikenwilo *University of Aberdeen Scotland, United Kingdom
  • Anthony Orji University of Nigeria Nsukka, Nigeria

DOI:

https://doi.org/10.32890/ijbf2011.8.4.2

Keywords:

Bank Merger and Acquisition, Nigeria, Duration Analysis

Abstract

This paper examines the determinants of the exit behaviour of banks in the Nigerian consolidation program during July 2004 and December 2005. We conceptualise the exit process in a flexible bivariate competing risks model to examine the importance of macroeconomic and industry-specific factors for both merged banks and failed banks jointly. The preliminary results suggest that bank-specific characteristics mattered more for preventing bank failure than they did for emergence of the M&A banks. Second, the Central Bank of Nigeria’s assistance was highly influential in preventing bank failure, and, for banks that benefited, the assistance increased their probability of being merged or acquired. Also, we found no strong evidence suggesting that the prevailing macroeconomic conditions and industry-specific factors had influenced exit behaviour of banks during the consolidation exercise. We found evidence of structural dependence between failure and merger and acquisition hazards induced by CBN incentive.

 

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Published

12-12-2011

Issue

Vol. 8 No. 4 (2011): International Journal of Banking and Finance (IJBF) Vol. 8, No.4, 2011

Section

Articles

How to Cite

Agu, C., Olajide, D., Ikenwilo, D., & Orji, A. (2011). Mergers and Acquisitions: The Nigerian Banking Consolidation Program. International Journal of Banking and Finance, 8(4), 19-46. https://doi.org/10.32890/ijbf2011.8.4.2

Research impact

Harvested 2026-09-07
4 citations, from OpenAlex — the highest of the sources checked

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Identifiers DOI 10.32890/ijbf2011.8.4.2 OpenAlex W125941813