Abstract

The bank consolidation programmes required banks in Nigeria to employ various strategies organic or Merger and
Acquisition to consolidation their capital base. This study empirically analyzed the impact of pre and post bank
consolidation on the growth of Nigerian economy using T-test. The study observed that post bank consolidation
have significant positive effect on the growth of Nigeria economy; pre bank consolidation has positive and
insignificant effect on economic growth. The implication of the study are the Merger and Acquisition growth
strategy 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 Merger
and Acquisition) and that banks should boost profitability through effective intermediation and investment
diversification.

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