Journal of Management Research and Review (JMRR)

Aftermath Effects of Mergers and Acquisitions on the Performance of Deposit Money Banks in Nigeria: Evidence from 2021–2026

Vincent, ATTAH, Eleojo

13 August 2026 · Vol. 2, Issue 8, pp. 613-620

DOI: 10.65150/EP-jmrr/V2E8/2026-06

Abstract

This article examines the aftermath effects of mergers and acquisitions (M&As) on the performance of Deposit Money Banks (DMBs) in Nigeria during the 2021–2026 policy window. The period is analytically important because it combines the mature post-2005 consolidation era with renewed balance-sheet pressure arising from naira depreciation, inflation, technological competition, the failure of Heritage Bank in 2024, and the Central Bank of Nigeria’s (CBN) 2024–2026 recapitalization programme. Rather than fabricate unavailable 2026 bank-level observations or infer causality from a short panel, the study adopts an ex post facto documentary and comparative case-study design. Secondary evidence is drawn from audited annual reports, CBN and Nigeria Deposit Insurance Corporation (NDIC) publications, Nigerian Exchange disclosures, and recent peer-reviewed literature. The analysis uses the CAMELS logic—capital adequacy, asset quality, management efficiency, earnings, liquidity and sensitivity to market risk—together with evidence from merger-active and organically growing institutions. The findings indicate that the long-run aftermath of consolidation is broadly associated with larger balance sheets, wider deposit franchises, stronger capacity to raise capital, regional expansion and sustained profitability among leading banks. However, M&A is not a sufficient condition for superior performance. Integration costs, duplicated systems, cultural friction, credit-quality problems, governance weaknesses and macroeconomic revaluation can offset expected synergy. Strong 2023–2025 nominal earnings also partly reflected high interest rates, foreign-exchange translation effects and inflation, making simple before-and-after comparisons potentially misleading. The study concludes that mergers and acquisitions remain useful instruments for recapitalization and systemic stability, but their benefits depend on acquisition discipline, post-merger integration, risk governance and regulatory supervision. It recommends transaction-specific performance monitoring, disclosure of synergy targets, protection of depositors and employees, and the use of risk-adjusted rather than purely nominal performance measures.

Keywords: mergers and acquisitions, Deposit Money Banks, banking consolidation, recapitalization, financial performance, Nigeria.

Read the full text on Journal of Management Research and Review →The full peer-reviewed article and PDF are hosted on the journal's site (the version of record).

Vincent, ATTAH, & Eleojo (2026). Aftermath Effects of Mergers and Acquisitions on the Performance of Deposit Money Banks in Nigeria: Evidence from 2021–2026. Journal of Management Research and Review, 2(8), 613-620. https://doi.org/10.65150/EP-jmrr/V2E8/2026-06

@article{Vincent2026,
  title   = {Aftermath Effects of Mergers and Acquisitions on the Performance of Deposit Money Banks in Nigeria: Evidence from 2021–2026},
  author  = {Vincent and ATTAH and Eleojo},
  journal = {Journal of Management Research and Review},
  year    = {2026},
  volume  = {2},
  number  = {8},
  pages   = {613-620},
  doi     = {10.65150/EP-jmrr/V2E8/2026-06},
  url     = {https://doi.org/10.65150/EP-jmrr/V2E8/2026-06}
}

← Back to all articles