Nigerian Banking Consolidation and Market Structure

Abstract

Purpose – The chapter tests the effects of capitalisation on market structure within the context of Nigerian banking sector reform.

Design/methodology/approach – The chapter is based on data collected through secondary sources, mainly from financial statements of banks audited by the CBN. The time period under review is 2001–2009, encompasses the 18 months transitional window and a trajectory of 3 years before the consolidation announcement. Quantitative methods were used to analyse available data.

Findings – The result confirms that banking consolidation led to an increase in the size of the top end of Nigerian banks.

Originality/value – This is the first study that tests the effects of capitalisation on market structure of the Nigerian banking sector.

Citation

Okafor, C., Russell, K. and Lawal, L. (2012), "Nigerian Banking Consolidation and Market Structure", Menyah, K. and Abor, J. (Ed.) Finance and Development in Africa (Research in Accounting in Emerging Economies, Vol. 12 Part B), Emerald Group Publishing Limited, Leeds, pp. 97-120. https://doi.org/10.1108/S1479-3563(2012)000012B009