Impacts of Mergers and Acquisition on the Performance of Nigerian Banks (A Case Study of Selected Banks)

Mergers and acquisitions as a form of corporate restructuring are reform strategies recently adopted to reposition the banking sector. This research work seeks to examine the impacts of mergers and acquisition of commercial bank’s performance in Nigeria as the main objective. The research used shareholders fund and profit after tax of the selected banks as proxies to measure the financial efficiency of the banks in both pre and post consolidation eras in Nigeria. Two banks were selected for this study using simple random sampling methods. Data were collected from Academic journals, Nigerian stock exchange archive, text books, magazines, newspapers, companies’ annual reports, and internet sources and were subsequently analyzed using correlation and regression with the aid of Econometrics view (version 7). This research found out that “mergers and acquisition” is an effective means of ensuring the stability and profitability of the banking sector, the study also found out that shareholders fund contributed significantly to the profit after tax of the banks, and that corporate restructuring has affected the capital adequacy of commercial banks positively, It was also discovered that synergy gains are the key motive for bank merger

Exchange Rate Management and Sectoral Output Performance

The goal of every economy is to have a stable exchange rate with the countries it trades with; therefore exchange rate is very vital to the economy of every country. Nigeria has adopted both fixed and fluctuating exchange rate regimes in order to achieve the goal of a realistic exchange rate but this has proven futile as the economy has continued to perform poorly over the years. This study is therefore aimed at examining the effect exchange rate management has on the output performance of both the agricultural sector and the manufacturing sector. Secondary data from 1981 2015 were analyzed using the Ordinary Least Square technique. The results showed that exchange rate has a positive and significant effect on only the agriculture sector. The study recommends amongst others that efforts should be made to increase the exportation of agricultural products in order to boost exchange rate

ELECTRONIC BANKING AND CUSTOMERS’ SATISFACTION ON TELECOMMUNICATION IN SELECTED DEPOSIT MONEY BANKS IN OTAOGUN STATE

Electronic banking has contributed to the unemployment rate in the country due to the replacements of human labor with machines. Thus, this study seeks to empirically examine the effects of electronic banking on mobile telecommunication customer satisfaction in Nigeria. The primary source of data was used for the study through the administration of questionnaires to the customers of the telecommunication companies. Regression analysis was used to analyze the hypothesis with the aid of the statistical package for social science (SPSS) version 23. The study found that electronic banking channels have significantly affected customer’s satisfaction. The study recommends that the problem of financial exclusion should be alleviated such that businessmen that have limited literacy level should be captured in the e-banking channels by galvanizing new and innovative e-payment platforms in various voice prompt local dialects to encourage the informal sector to be part of the online-payment processes

AGRICULTURAL FINANCE AND ECONOMIC GROWTH: EVIDENCE FROM NIGERIA

The study performed an in-depth examination of the impact of guaranteed agricultural finance to oil palm, cocoa, groundnuts, fishery, poultry, cattle, roots, and tubers on the real gross domestic product of the country. Time series data was sourced from the Central Bank of Nigeria statistical bulletin of various issues. The data sets covered thirty-seven (37) years spanning from 1981 to 2017. The study used Autoregressive Distributed Lag (ARDL) model for its analysis. However, prior estimation and due to several exogenous variables, Phillip Perron stationarity test was used to determine the order of integration because of its robustness to serial correlation and heteroskedasticity. The study also specified the lag criterion based on LR, FPE, AIC, SC, and HQ using Newey-West covariance matrix estimator. Findings from both short-run and long-run models as confirmed by the Wald test, which shows that none of the guaranteed agricultural finance is statistically significant to real gross domestic product. The study, therefore, recommends increased funding and deliberate efforts at determining which of the nominated agricultural spending has the most contributory impact on growth

Has Nigerian agricultural output spurred economic growth: the financing gap model using stepwise regression

This study examined if the Nigerian agricultural output has spurred economic growth and the best fit agricultural financing gap model for growing the economy. The study explored the dynamics of different technicality approach that stepwise regression has to offer. From the seven baskets of predictors – agricultural guaranteed finance to oil palm, cocoa, groundnuts, fishery, poultry, cattle, roots and tubers – the step fitted three predictors: roots and tubers, cocoa and poultry based on “a b” parameter with the highest “t-stats” and significant p-value and subsequently executed the model using stepwise regression analysis with the help of Statistical Package for Social Sciences (SPSS) version 23. The dataset covers a thirty-six year period from 1981 to 2017. The source of the data is from the Central Bank of Nigeria 2018 statistical bulletin. The findings showed that individually, root and tubers has the most contributory impact on economic growth with 81 percent. Jointly followed is cocoa at 87 percent and poultry at 90 percent. The study thus recommends a comparative cost advantage to financing agriculture with the most impactful contribution to economic growth based on the model

Capital Flight and the Economic Growth: Evidence from Nigeria

This research examined the impact of capital flight and its determinants on the Nigerian economy using the Autoregressive Distributed Lag (ARDL) model to analyze data source from the period of 1981 to 2015. The variables included current account balance, capital flight, foreign direct investments, foreign reserve, inflation rate, external debt, and the real gross domestic product. It was to examine the existence of a long run relationship among the variables studied. The result indicates that capital flight has a negative impact on the economic growth of Nigeria. Therefore, the government needs to implement policies that will promote domestic investment and discourage capital flight from Nigeria

Macroeconomic risks and financial sector stability: the Nigerian case

This study examines the long-term effect of lending rate, exchange rate, inflation, institutional regulatory quality, budget deficit and gross domestic product on financial sector stability, proxied by the behavior of bank credit from 1981 to 2018. Using fully modified ordinary least square technique in an autoregressive distributive lag framework, non-performing loan is directly sensitive to lending rate, budget deficit, inflation rate and gross domestic product growth rate, but negatively related to exchange rate (a proxy for oil price) and institutions’ regulatory quality. The study concludes that macroeconomic risks matter in the live of bank credit, and recommends reforms to promote financial health: focus on capital and securities markets for longtenured lending, credit market competitiveness to reduce lending rate; improved liberalization of foreign exchange market; ease of doing business and economic inclusion to improve the growth rate

The impact of financial deepening on economic growth in Nigeria (1981-2018)

Different academics and experts have acknowledged that developing the financial sector positively impacts economic growth by increasing productivity, progress and national investment. Expanding the financial sector allows financial intermediaries to carry out functionalities of deploying, aggregating and directing a country’s savings into an investment which contributes to domestic progression. This research explores the effect of financial deepening on Nigeria’s growth for 38 years covering 1981- 2018. The main research goals were to investigate the linkages among time and savings deposit of commercial banks, money supply and credit to the private sector on the economy’s growth. Data was obtained from CBN Bulletin different issues and analyzed using Autoregressive Distributed Lag. From the result of analysis, we found out that long run relationship existed but no regressor was found to be significant. Credit to the private sector to GDP was inversely related to GDP growth whereas money supply to GDP had positive relations with economic growth rate, time and savings deposits in commercial banks negatively affected national growth. Policies favoring credit lending to the private sector should be encouraged by stakeholders in the economy, for instance, higher savings interest rates would encourage more savings. More importantly, policies should be enacted to make sure that savings are transmitted into productive investments that can yield financial deepness

A Systematic Literature Review on Mergers and Acquisitions: A Bibliometric Analysis Approach

Many studies have examined the effects of mergers and acquisitions, but their results vary significantly. Thus, mergers and acquisitions are one of the most popular corporate restructuring activities undertaken by various organizations, institutes, companies (both private and public), agencies, and establishments, all in a quest to achieve the desired aim of the companies. But a pertinent question exists as to if mergers and acquisitions (M&A) have produced the desired goals and objectives of the companies. Therefore this study aims to examine the results, empirical preference, and author's opinions of existing literature as to if M&A had produced synergy gains or not. Bibliometric analysis is the methodological procedure used in this study. A total number of fifty (50) high-profile literatures were qualitatively examined, and it shows that M&A produced synergy gains to the level of 48%. From the analysis, M&A was also found not to produce synergy gain to the level of 28%, thus making the remaining 24% to be associated with authors whose views weren't explicit and those that are undecided to M&A producing synergy gains. This review study recommends that horizontal mergers and acquisitions be encouraged to increase the companies' market share, leading to their desired goals and objectiv