The Merger and Acquisition of Nigerian Banks From 2007 Till Date

The Merger and Acquisition of Nigerian Banks From 2007 Till Date

Merger and Acquisition of Nigerian Banks – Merger according to Oxford Advanced Learner’s Dictionary 7th ed. Is the act of joining two or more organizations or businesses into one. While acquisition is something that somebody buys to add to what they already own, usually something valuable.

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In his definition of the term (Gaughan 2007) defines merger as a combination of two or more co operations in which only one cooperations survive. He also states that the acquiring company assumes the assets and liabilities of the merged firm.

The term merger then, refers to the combination of two or more organizations into one larger organization such actions are commonly voluntary and often results to a new organizational name. This is usually done by combining the names of the original organization, usually the one that has the largest share or ownership. An example is seen in Table 1 below, where the bigger or sound firm’s name overrides the constituent names.

Acquisition, on the other hand is the purchase and total takeover of all the property (assets and liabilities) of the purchased institution. From this definition rendered so far, one can deduced that the two terms can be used interchangeably but that should not compromise the sharp difference between them.


 On the impact of merger and acquisition in the banking industry and in economic growth kaur and kaur (2010) noted that mergers and acquisition in the banking industry are aimed at achieving economies of scale and scope. This is because as the size increases, the efficiency of the system also increases.

Banking Industry in Nigeria, has undergone a lot of changes and transformation in policies and operations, courtesy of merger and acquisition that was made possible with the coming of Professor Charles Soludo, as the Central Bank of Nigeria (CBN), Governor and the subsequent announcement on July 6, 2004 that the minimum capital requirement base of banks in the country be moved up from the previous two (2) billion naira to twenty five (25) billion Naira ; citing that cases of bank failure in the 1990’s and early 2000’s was the major motives for this change and subsequently, that the deadline for the final phase of the consolidation should be December, 2005.

This announcement is the bedrock of the strong and efficient bank(s) that we witnessed lately. Which is due to the mergers and acquisitions in the industry, as it led to a tremendous growth in the economy. Though, it is not complete or perfect outing for the then  Governor, as with his leaving office, and New Governor in place, there is indication that some of the new banks is not perfectly in good condition as noted by Sanusi (2010) however says neither the industry nor the regulators were sufficiently prepared to sustain and monitor the sectors exclusive growth. And thus, the recent acquisition of the unsound bank(s) by a more viable ones.

Tables below shows a thorough breakdown of the merger and acquisition of Nigerian banks that have taken place since the tenure of Professor Charles Soludo to the incumbent (CBN) Governor, Mallam Sanusi Lamido Sanusi which saw the previous 89 banks before 2005, coming down to 25.

 Table I (Merger and acquisition of Nigerian Banks in the early phase 2004 and 2005)




1. Access Bank PLC Access Bank, Marina Intl. Bank and Capital Bank Intl.
2. Afribank Nig. PLC Afribank Plc and Afribank lntl. (Merchant Bank)
3. Bank PHB Plc. Plantinum Bank Limited and Habib Nig. Bank Limited.
4. Diamond Bank Plc. Diamod Bank, Lion Bank, Devcom Bank Ltd.
5. Fidelity Bank Plc Fidelity Bank, FSB Intl. Bank, Manny Bank.
6 First Bank of Nig. Plc First Bank Plc, MBC, Intl Bank And FSB (Merchant bank)
7 Equational Trust Bank PLC Equational Trust Bank Ltd and Devcom Bank ltd.
8 First city monument Bank Plc First city moment bank, coop Dev. Bank, Nigeria-American bank and Midas Banks
9 First Inland Bank Plc First Atlantic Bank, Inland Bank, Nigeria Plc, IMB Intl. Bank PLC And NUB Intl. bank.
10 IBTC Chartered bank plc IBTC, charterd Bank plc and Regent Bank PLC.
11 Intercontinental Bank plc Citizen international bank, ACB international bank guidance Express bank, omega bank trans.
12 Oceanic Bank Intl. plc Oceanic Bank  intl. bank plc and intl. trust bank.
13 Sky Bank plc Prudent Bank Plc, Bond Bank Ltd, Reliance Bank Ltd, Cooperative Bank Plc And ETB intl. Bank ltd.
14 Spring Bank Plc Citizen Intl. Bank, Acb Intl.  bank guardians Express bank, onga bank. Trans. Intl. bank, and Fountain trust bank.
15 Sterling Bank PLC Trust Bank, Afica Ltd. NBM Bank Ltd, Magnum Trust Bank NAL Bank Plc and indo-Nigeria Bank.
16 Uited Bank for Africa PLC United bank for Africa PLC, standard trust bank plc,  and continental bank
17 Union Bank of Nigeria Plc Union Bank of Nigeria Plc, Union Merchant Bank Ltd Broad bank of Nigeria Ltd and Universal Trust bank Nigeria Plc.
18 Unity Bank Plc Intercity Bank Plc, First Interstate Bank Plc, Tropical Commercial Bank Plc, Center-Point  Bank Plc  Bank O Fthe North, New Africa Bank, Sociate Bankcare, Pacify Bank And New Nigeria Bank.
19 Wema Bank PLC Wema Bank PLC and National Bank of Nigeria LTD
21 Ecobank Ng. Plc
22 Stanbic Bank
23 Standard Charted bank
25 Guaranty trust bank.

As earlier pointed out, some of the banks in Nigeria after the deadline of 2005, was found to be unsound and inefficient. Table 2shows the distressed banks and the new bank that acquire them.

Table 2

S/No Distress  Bank New Bank that acquired them.
1. Afribank plc Mainstreet Bank Ltd
2 Equatorial Trust bank Sterling Bank Plc
3 First Inland bank First city Movement Bank
4 Intercontinental Bank PLC Access Bank PLC
5 Oceanic Bank PLC Ecobank Nigeria PLC
6 Spring Bank Enterprise Bank LTD
7 PlatinumHabib Bank Keystone Bank LTD
8 Union Bank PLC Owned by African Capital Alliance Consortium.

Table 3 below, listed the current number of banks in Nigeria, which stood at 21 from the previous 24 after the mergling of stanbic bank and IBTC charted bank plc. And the restore of Savannah Bank license.

 Table 3



1 Access Bank Plc
2 Diamond Bank Plc
3 Fidelity Bank plc
4 First bank plc
5 First city monument Bank plc
6 Sky bank plc
7 Stering Bank plc
8 United Bank Afica plc
9 Unity bank plc
10 Wema Bank plc
11 Ecobank plc
12 Zenith bank plc
13 Standard chartered bank
14 Nigeria Intl. Bank
15 Guaranty trust bank
16 Enterprise Bank Ltd
17 Keystone bank ltd
18 Union Bank Plc
19 Mainstreet  bank ltd
20 Savannah bank Nig.
21 Stanbic-IBTC Bank Nig. LTD


          The successful recapitalization of the rescued banks in Sept., 2011 has significantly engendered economic growth and development as a result of the soundness, healthiness and stability achieved by the entire system.

With this development, the total number of banks in the country is expected to reduce from 24 to 20 but with the inclusion of Savannah Bank, which its license revoked sometimes ago has been lifted and thus, bringing it to 21 banks presently.

According to the central Bank of Nigeria (CBN), “Banks operating in the country are now sound, from a capital perspective following the exercise the apex bank revealed that the average capital adequacy ratio (CAR) of all the banks operating in the country rose significantly to 17.12 percent, after the recapitalization exercise”1.

It also revealed that the average of the lowest capital of all the banks in the country currently stands around the regions of 10.69 percent while the highest stands at an average of 41.23 percent.


          Indeed, mergers and acquisition globally had resulted in more efficient banking systems, just as an efficient banking system contributes extensively to higher growth in any country.  And in the case of merger and acquisition of Nigerian banks, Nigeria has benefited tremendously from the move to consolidate the banks; and the mergers and acquisitions process. Though, the problem of mergers and acquisition is never underestimated but the advantage so far is beyond imagination.


See: This Day Newspaper: Nigeria: new Shape of the Country’s Banking Sector. 12 October 2011.

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  1. Waoo…. Keep it up

  2. Great Blog.

  3. its ok

  4. Obatomi Olorunshola Theophilus says:

    In addition, Access bank plc has now acquired Intercontinental bank plc

  5. Nice one, more of it please

  6. Adelusi Taiwo says:

    Helo Sir more grease to your elbow,Well done. B4 the 1st merger and acquisition 2004/2005, there was global bank. What was its position after. Tanx

  7. Awotunbo Adeolu says:

    very useful

  8. Yatu Julius says:

    It Is A Nice And Interesting One. I Found It Helpful To Me, Pls Keep It Up!

  9. Akinlade Michael Babajide says:

    pls do u know the recapitalization base of merchant bank in Nigeria (nationally, regionally),the mode of operation of CBN and who is financing CBN

  10. MICHAEL JUMBO says:

    I seriously interested in details of the merger acquisation between Ecobank PLC and Oceanic bank PLC. Do you have access to research work in that direction of further access to such materials.
    Please contact me on 07032792626. Your services will be paid for.

    Thank you

  11. Banks that merged with keystone bank

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