Chikezie Adanna Olachi


This paper is aimed at assessing the capacity of the market to accommodate the consolidation on capital market growth and to evaluate the likely impact of bank consolidation on the operations of the Nigerian

stock Exchange. Consolidation of the financial sector is not a new phase in Nigeria. It has been occurring right from conception till birth of the banking industry. It is however evident that a roadmap was constructed

through setting up of hypothesis designed to examine the degree of flexibility of bank consolidation and capital market development. Decisions were based on the results of the findings and reason for such decisions provided. In Conclusion there exists a strong positive relationship between banking consolidation and capital market development in Nigeria. Therefore, all the regulatory authorities involved have much to

carter for as the expected booming activities of both sectors (bank and capital market) may go beyond the scope of their imagination and if not properly counteracted, will put the entire economy in a shamble. The major recommendation is that the regulatory authorities (SEC) should improve on their laxities through strengthening trade alert system via CSCS so as to pretect against the occurrence of share scam. On the part of the banking industry, more budgets to avoid the initial rush to the capital market for funds / loan placing.


capital market, bank consolidation, regulatory Authorities and Security and Exchange Commission SEC

Full Text:



Agu, A.O (2007). Research Methodology. Onitsha: NAJUTEL Nigeria Limited.

Akkarein J.E and Chamberlain (1999) The Effect of Mega Mergers in Efficiency and prices. Review of

Industrial organization.

Anyanwu J.A (1998). Structure of the Nigerian economy.

Bala, K. J. (1998), Mergers and Acquisition as a survival strategy under the Structural Adjustment


Banayee, A. and Cooperman, E. (1998). Returns to Target and Acquires Denver: University of Colorado

Press Limited.

Berger, A.N and Humphery D.B.(1997). Mega Mergers in Banking and the use of cost Efficiency as an

Antitrust Defense.

Blachi, J. (2005) Oxford Dictionary of Economics United States: Oxford University Press Inc. New York. Bureau of Public Enterprises (BPE) (2004): Fiscal and Monetary Policy in Nigeria before and after SAP. Central Bank of Nigeria (CBN) (2000): A paradigm for consolidation.

Cornett, M.M and Tehranain, H (1992) Journal of Financial

Economics. Egungwu, I. (2005) Finance, Onitsha: Book Point Limited. Emeka, C (2004). Mergers and Acquisitions Thisday News Vol 10 No 3525.

Erastus, A (2004) Dynamic of Reform Laws and Regulations in Banking . This day News Vol. 10 No 3530.

Hannan. TH (1998). Do Substantial Horizontal Mergers Generate significant price Effect? Washington D.C: working paper limited

Hardwick, P (1994). An introduction to modern economic 4th edition, United States: University Press Oxford

Ihingan, M.L (2004) Monetary Economics. Delki: Nisha Enterprises

Ihingan, M.I (2004). Theory of Econometrics second Edition. New York: hounmills press. Moore. R.R (1998). Banking Mergers Favor Survival of the Fittest? Federal Reserve Bank Dokar. Sudarsanamn, P.S. (2003). The Essence of Mergers and Acquisition, India: Vikas Publication.

Soludo, C.C. (2004). Consolidation of the Banking Industry to meet Developmental Challenges

Http://www.Thisday on line.combusiness

Toluhi, J.O. (2001) Fundamentals of Research Methodology. Onitsha: Africana Feb Publications Limited. Zhana, U. (1998). Wealth Effects of U.S Bank Takeovers. Applied Financial Economics 239 - 336.


  • There are currently no refbacks.

ISSN (Print): 2276-8645


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.