Impact of Pre and Post Bank Consolidation on the Growth of Nigeria Economy

Abstract

The bank consolidation programmes required banks in Nigeria to employ various strategies organic or Merger andAcquisition to consolidation their capital base. This study empirically analyzed the impact of pre and post bankconsolidation on the growth of Nigerian economy using T-test. The study observed that post bank consolidationhave significant positive effect on the growth of Nigeria economy; pre bank consolidation has positive andinsignificant effect on economic growth. The implication of the study are the Merger and Acquisition growthstrategy results in superior economic growth and that pre bank consolidation is not significant to economic growth.The study recommended that subsequent upward review of capital base should be done mainly by way of Mergerand Acquisition) and that banks should boost profitability through effective intermediation and investmentdiversification.