THE EFFECTS OF MERGERS AND ACQUISITION ON FINANCIAL INSTITUTION IN NIGERIA ECONOMY

ABSTRACT

The focus of this project is to elucidate evaluation of mergers and acquisition of financial institution on the Nigeria economy. As a matter of fact the importance of merger and acquisition in the survival of a business cannot be overemphasized, therefore its help in enhancing banking efficiency, size and development. This project work was design to find the effect of merger and acquisition in intercontinental bank plc, as well as the effects of mergers and acquisition of banks on the Nigeria economy in which some of the factors that contributed to the growth of economy also analyzed. For comprehensive understanding, this project is presented in five chapters. Chapter one include the introduction, chapter two comprise of the literature review, chapter three contain the research methodology, chapter four contains the result and discussions while chapter five contains the summary, conclusion and recommendation.     

CHAPTER ONE

INTRODUCTION

 

1.1       Background of the Study

In any organization where the business is not flourishing and there are indications of failure, one of the options available to the owner is to re-organize the business so as to close the gaps and streamline avenues for improvement. Re-organize therefore means re-engineering the b business for a better performance in near future as a result of recapitalization policy pronounced by the Central Bank of Nigeria (CBN). The investors decided to consolidate their group activities into one entity in order to meet up with their subsidiary banks. The easiest example at hand is the International Bank Group consolidation.

According to professor Soludo (Former CBN Governor) in his speech (2004) Merger and acquisition should be taker seriously as an instrument for enhancing banking efficiency, size and developmental roles. The last few years have witnessed the creation of the world banking group through mergers and acquisition. The trend has been influenced by factors such as prospect of cost-saving due to economies of scale as well as more efficient allocation of resources, enhanced efficiency in resource allocation and risk reduction arising from improved management. Mergers and acquisitions especially in the banking industry is now a global phenomenon.

Merger and acquisition have been identified as veritable strategic options for enhancing the efficiency of local business globally. This formed part of the communique issued at the end of the seminar organized by the Financial Institution Training Center with the theme “Gaining Competitive Advantage: Mergers and Acquisitions Strategic Option”

The participant observed that merger and acquisition were not new in Nigeria as there had been more than 20 successful cases of mergers and acquisitions in the last twelve (12) years, which were motivated from outside the country’s boarders. In light of the foregoing, the motives behind any merger an acquisition are given as follows:

  • The need to maximize the opportunities available to a company by replacing its inefficient or incomplete management.
  • The need to achieve economies of scale resulting in the combined output of both enterprises.
  • The need of the part of management to achieve growth market power for the company.

The earliest known merger experience in Nigeria was between West Africa Soap Company Limited and Van Der Berg limited to form lever Berg Limited in 1926. However, not much merger activities were recorded therefore until the first phase of the indigenization programme in the 1970s which entails the divestment by foreign enterprises or portion of their equity to Nigeria interest.

Most mergers and acquisitions of this era were “in house” arrangement to be found in (UAC) United African Company Nigeria group in which companies that had previously operated independently were brought together as division of (UAC) United of Africa company Nigeria Plc. The first merger between two public quoted company were recorded in 1983. This was the merger between (A.G) A vis Global Leventis stories.

The practices of mergers and acquisitions was not being constrained by regulatory environment but mainly by inherent attitudinal resistance to business mergers, shareholders and employers that had adopted this economic measure as help to recorded great turnover and have become giant and Colossians in economic activity in Nigeria, as shall be revealed later on his study. intercontinental Bank Group through merger and acquisition become a household name in Nigeria that has been successful.

The research intends to find out the effects of merger and acquisition of financial institution on the Nigeria economy through an empirical investigation.

1.2       Statement of the Problem

Owing to the recent #25 billion recapitalization policy instituted by Central Bank of Nigeria (CBN) to all the banks in Nigeria. It becomes imperative to look into mergers and acquisition that will enhance the efficiency of banking industry and make them more globally competitive.

Now this study attempts to raise a number of issues among which are:

  • Late or non publication of annual account
  • There are problems of weak governance in the banking sector
  • Over dependency on public sector deposits

MARKETING OF BANKING SERVICES IN NIGERIA

ABSTRACT

This project work provides careful understanding of marketing in the banking and discussed in detail marketing strategy and marketing mix, the need for marketing of banking services and the benefits to derive from effective marketing of banking services. It briefly discussed some constraint on the management of banking services and the ways of overcoming them. the project work was concluded by identifying some lapses in the marketing of services by Banks in Nigeria especially the case study (Union Bank of Nigeria plc) and proffers some recommendation to ensure efficiency and effectiveness in marketing of bank services.

COLLECTIVE BARGAINING AS A TOOL FOR SETTLEMENT OF INDUSTRIAL DISPUTES (A CASE STUDY OF AFRIBANK NIGERIA PLC, LAGOS)

 ABSTRACT

This study was limited to examine how collective bargaining is the tool for industrial disputes settlement in an organization, most organization nowadays found that it is difficult to use the instrument for the industrial peace in one factor or the other. The most common of such factor is collective bargaining which will be fully analyzed inside this project work. The project work will clearly examine how collective bargaining can be used as a tool for industrial disputes boost worker’s efficiency in any given organization, a manufacturing firm in question.          

LIQUIDITY MANAGEMENT AND PERFORMANCE OF MANUFACTURING COMPANIES

ABSTRACT

This project focused on liquidity. It manages the mental performance of a manufacturing company. The aim of this study is to help manufacturing companies to adopt every spared policy on administration of liquidity assets and closely monitor these policies for optimalty. It was firmed that the inadequate current assets can jeopardize the profitability and survival of the survival of the company and firms must be in liabilities to be in business. Structured questionnaire and personal interview were used covering the aspect of the hypothesis is put forward for top management, interpreted and analyzed by using tables and average method from the certain suggestion were made not on the down find on stock, instead, they should invest on marketable securities are easily collected. Readers are hereby encouraged to study this re[ort for details.  

THE IMPACT OF INFORMATION TECHNOLOGY ON BANKING OPERATIONS IN NIGERIA

ABSTRACT

As information technology is the modern trend on banking today, it’s very imperative for banks to access its impact operational performance so as to justify if the capital invested on it is justifiable or not, analyze their problem and profit possible solutions. The objective of this study is to examine how the adoption of information technology affects the operations commercial banks and the effects information technology on banks, customer relationship The main research instruments used Are questionnaire fro staffs and customers of the bank. The simple frequency percentage was adopted as the statistical measure and hypothesis testing was analyzed using chi-square. In conclusion, the study reward that information technology has tremendously improved growth and performance of the Nigeria commercial banks. Information technology has lead to increase to increase customer satisfaction, improved operational efficiency, reduced transaction time, gives the bank a competitive edge. The research recommended that government should support and loan money to local firm to foster importation, lower tariff on importation of information technology related equipment and their agencies and regulatory bodies should upgrade their equipment as well and the banks should continuously implement customer centered IT products and services of international standard        

AN EVALUATION OF IMPACT OF IFELODUN MICRO FINANCE BANK, IKIRUN, ON AGRICULTURAL DEVELOPMENT IN IFELODUN LOCAL GOVERNMENT AREA

ABSTRACT

The project examines an evaluation of impact of Ifelodun Micro-finance bank Ikirun on agricultural development in Ifelodun Local Government. Introduction, purpose and limitation of the study etc were examined. I deals with development of Agricultural Financing in Nigeria objective, scope, literature review, the role of agricultural in economic development and solution to the problem facing them. That is research methodology and process of data collection were examined. Exposed the financing data analysis and data collecting and also analyzing of response from respondent from Micro-finance bank in which were critically review. Conclusion base on the summary of findings and recommendation to the general public at large.

THE SIGNIFICANCE OF ACCOUNTING IN THE MANAGEMENT OF SMALL SCALE BUSINESS IN IFE-METROPOLITAN CITY

 ABSTRACT

As Information Technology is the modern trend in banking today, it’s very imperative for banks to access its impact operational performance so as to justify if the huge capital invested on it is justifiable or not, analyze their problem and proffer possible solutions. The Objective of this study is to examine how the adoption of Information Technology affects the operations of commercial banks in terms of effectiveness, efficiency, competitiveness, customer base and globalization of the bank. The main research instruments used are questionnaire and personal interview for staffs and customers of the bank. The simple frequency percentage was adopted as the statistical measure and hypothesis testing was analyzed using chi-square. In conclusion, the study revealed that Information Technology has tremendously improved growth and performance of the Nigerian Commercial banks. Information Technology has lead to increase customer satisfaction, improved operational efficiency, reduced transaction time, gives the bank a competitive edge, reduced the running cost and ushered in swift response in service delivery. The research recommended that Government should improve the electricity supply in the country, they should support and loan money to local IT firms to foster importation, lower tariff on importation of Information technology related equipment’s and their agencies and regulatory bodies should upgrade their equipment’s as well. The private sectors should invest into improving electricity and the banks should continuously implement customer centered IT products and services of international standard.

THE CONSEQUENCES OF MERGER AND ACQUISITION ON FINANCIAL INSTITUTION IN NIGERIA

ABSTRACT

The focus of this project is to elucidate consequences of mergers and acquisition on financial institution in Nigeria. As a matter of fact the importance of merger and acquisition in the survival of a business cannot be overemphasized, therefore its help in enhancing banking efficiency, size and development. This project work was design to find the consequences of merger and acquisition in Access bank plc, as well as the consequences of mergers and acquisition of banks in Nigeria in which some of the factors that contributed to the growth of economy also analyzed. For comprehensive understanding, this project is presented in five chapters. Chapter one include the introduction, chapter two comprise of the literature review, chapter three contain the research methodology, chapter four contains the result and discussions while chapter five contains the summary, conclusion and recommendation.

MANAGER AND ACCOUNTANTS PERCEPTIONS OF RATIO ANALYSIS AS A TOOL FOR DECISION MAKING IN AN ORGANIZATION

ABSTRACT

This research entitled “The use of accounting ratios in decision making” tired to find out the degree to which accounting ratios can be used to draw conclusion upon which decision are made. This has been done considering Unilever Nigeria Plc as a case study. The research specifically had to identify different ratios used in financial statement analysis in decision making, also the role of financial ratio analysis in decision making had to be indicated and lastly the use and limitation of accounting rations. Both secondary and primary data were consulted during this research. Primary data was collected with the help of interview given to the members of the management staff. Respondents were selected based on their role in financial activities in Unilever Nigeria plc, text books, and internet resources were consulted. This study revealed that the accounting ratios are indispensable in reasonable decision making. Generally, some of business entity uses accounting ratios in a proper way. The use of accounting ratio in financial statements analysis varies according to the decision to be made by those who use them. Different managers use different analytical tools and techniques depending on the objectives of the analyst and nature of the business, it was further found out that the accounting ratios reduce the long array of financial statement in   decision making. On the basis of the study’s major findings, there was no sufficient evaluation to reject the alternative, namely” The use of accounting ratios guide management as an effective tool in decision making.

APPRAISAL OF COST CONTROL SYSTEM IN THE NIGERIA MANUFACTURING INDUSTRY

ABSTRACT

 In this time of rising prices, brewery like any other manufacturing company needs an efficient system of cost control as an essential factor in reducing the cost system of production in order to maximize profit. Due to inefficient cost control system some companies just mange to break even or in most cases make substantial losses hence our assessment of cost control in Nigeria manufacturing at Guinness. As a result of this, our finding is to show the appropriate system of cost control which can be used to minimize production cost and its effect under the manufacturers condition. The entire study consists of five chapters, chapter one introduced us to the study highlighting the background, purposes of the study, and an insight into the historical background of Guinness Nigeria Plc. Chapter two is a relevant literature on cost while chapter three briefly discuss the research method applied. A detail of data obtained is chapter four, chapter five the last chapter, contains summary, conclusion and recommendation.