Experience has shown that in many instances, counterparties to business combinations sometimes fail to evaluate the tax implications of the proposed business combination pre andpost the transaction. A history of identities, violence, and stability in nigeria. This is the first systematic study of the general economic development of nigeria, including its long precolonial story, and, with this, it stands as the first academic economic history of any black african country. There must be a consensusadidem and compatibility of objectives between the merging firms otherwise the merger will fail. In this article, we would be exploring the legal framework of merger and acquisition in nigeria.
Overview of the nigerian economy economic and social environment since 2003, the government of nigeria has sustained farreaching economic reforms at the federal level, particularly in public finance management, and the financial sector. The nigeria economic report will also be a vehicle for the dissemination of existing world bank studies that are deemed to be of particular relevance for nigeria. It is ranked as the largest economy in africa, the 21st largest economy in the world in terms of nominal gdp, and the 20th largest in terms of purchasing power parity. Nigeria is also a member of the british commonwealth of nations. The british economic policy for africa at the time was founded on the belief that if african. Nigeria is a middle income, mixed economy and emerging market, with expanding financial, service, communications, technology and entertainment sectors. A series of world oil price increases from 1973 produced rapid economic growth in transportation, construction, manufacturing, and government services. The central bank of nigeria as generally called gets involved in merger and acquisition activity where banking institutions are involved. It concluded that merger and acquisition can stimulate economic growth and development of any nation. Introduction to topics in the history and structure of nigeria economy history and structure of nigerian economy series arts, management and social sciences handbook series isbn 9782056650 9789782056658. The effect of merger and acquisition on the performance of. Nigeria is the most populous cou ntry in africa, the second biggest economy, the third largest military power and the biggest oil producer 10th oil producer in the world.
Pursuant to the provisions of the isa, the key regulator for merger and acquisition is the securities and exchange commission sec rules. It outlines government revenue and expenditure for a given fiscal year. The beginning of this period saw nigerias economy devastated by the slave trade, and then her people further exploited through the british colonial introduction of. Geographical, historical and political profiles of nigeria. Since the late 1960s it has been based primarily on the petroleum industry. Six periods of high merger activity, often called merger waves, have taken place in u. Pdf the banking reform pronounced on the 6 th of july, 2004 had been a major. Pages in category economic history of nigeria the following 4 pages are in this category, out of 4 total. Many studies in nigeria revealed that the role of stock market has a positive impact on economic development and growths. The nigerian banking system and in deed, the entire nation. The principal law that governs the merger and acquisition in nigeria is the investment and securities act isa 2007. Nigeria, a british territory adjoining other french colonial territories, was in the middle of an economic boom and was the cornerstone of the west african economy. As seen from past experience mergers and acquisitions are triggered by.
In 1977 it became the nigerian stock exchange, with branches established in some of the major commercial cities of the country with lagos as the head office of the nigerian nigerian stock exchange and economic development. First, the spread of islam, predominantly in the north but later in southwestern nigeria as well, began a. Following the 200809 global financial crises, the banking sector was effectively recapitalized and regulation enhanced. Economic development in nigeria, although has been rocked back and forth by various political, sociocultural, financial and infrastructural setbacks, the economic development of a country like nigeria cant be said to have totally been where it used to be, or to have back tracked as some people insinuate. Journal of nigeria studies volume 1, number 2, fall 2012 political leadership and corruption in nigeria since 1960. This first nigeria economic report will give some attention to longer term trends in the coun. Postage stamps and postal history of the southern nigeria protectorate southern nigeria. In order to survive, company executives, government and economic planners started to. Doc the economic development of nigeria from 1914 to. The economic development of nigeria from 1914 to 2014. Britain eventually gained control of nigerian administration. The economic reforms and prudent policies have contributed to the consolidation of.
Nigeria emerged as a nationstate by 1960 and after the economic strife that followed world war ii for britain, a rapid economic development of nigeria was not in their interests. The adoption of common currency by an economic block, such as euro in. Search and screen birds of the same feather, they say, flock together. An assessment of nigerian stock exchange market development. History of mergers mergers, acquisitions, and corporate. The central bank has branches in all the state capitals and provides guidelines to all commercial and merchant banks in the country. This paper evaluates the impact of mergers and acquisitions on performance of banks in nigeria. Merger and acquisition is at its infancy stage in nigeria compared with other developed countries. The nigerian stock exchange was estab lished in 1960 as the lagos stock exchange. In this study, the objectives of the researcher is to find out the financial implications of mergers and acquisitions in nigeria commercial bank sector. The history of nigeria before independence in order to understand the current nigerian politics and society, three dominant characteristics need to be taken into account. Analysis of performance pre and post consolidation of thirteen mega banks in order to consider if there had been improvements. Truth is colonialism plays a big role in the history of nigerias economy.
Parties to a small merger may voluntarily notify the sec of the merger at any time. Tracing back to history, merger and acquisitions have evolved in five stages and each of these are discussed here. It operates the presidential system of government with three distinct but complementary arms namely the executive, the legislature and the judiciary, each acting as a check on. Although the years since nigerias return to civilian rule in 1999 have seen an increased interest in its history and politics, nigeria remains one of the most underresearched african countries. Nigerias flag consists of three equal vertical bands of green, white, and green. A history of identities, violence, and stability in nigeria by eghosa e.
This research work was aimed at determining the implication of mergers and acquisitions their effects on banks performance as regards to united bank for africa uba. Most of the studies noted that nigerian stock exchange market encourage economic growth olofin and afangideh, 2008, these studies in nigeria found positive impact from stock market development to economic growth. The current economic problem in our nation is often lamented and cursed as unendurable, as if it is peculiar to the nation alone. D, fca department of financial studies college of management science redeemers university km 46 48 lagos ibadan express way redemption city, mowa ogun state, nigeria.
Historical data were obtained from the financial statement and accounts of access. By examining key themes such as colonialism, religion, slavery, nationalism, and the economy, the authors show how nigerias history has been swayed by the. This restructuring may be done not just on the outlook of the company but also on the operational capacity of the company. In 1976 all foreign banks were compelled to sell 60 percent of their shares to nigerians. Political leadership and corruption in nigeria since 1960. There were very promising signs about nigerias economy after the country gained independence from britain. Notification is mandatory for acquisitions involving companies with assets or turnover of n500,000,000 and above which do not qualify for the exemptions referred to in 1. Nigeria witnessed an unprecedented wave of mergers and acquisitions in its banking sector in the post1995 and 2009 periods as a result of regulatory mandates issued by the central bank of nigeria, aimed at strengthening the capital base of nigerian banks. Colonialism is a major feature of the economic history of nigeria. Impact of mergers and acquisitions on the performance of.
The legal framework of merger and acquisition in nigeria. The current economic situation in nigeria can best be described as very turbulent with the. Moreover, the history of merger and acquisition activities in nigeria. Introduction nigeria is usually characterised as a deeply divided state in which major political issues are vigorously some would say violently contested along the lines of the complex. Post merger and acquisition and performance of deposit money. Several dominant themes in nigerian history are essential for understanding contemporary nigerian politics and society.
Apr 26, 2018 see history of nigeria economic development below. Nigeria has diplomatic relations with countries in europe, africa, america and asia. Many saw nigeria, with 15% of africas population, as an emerging economy. A company for the purpose of growth and development may take a decision to restructure its outlooks. The effect of merger and acquisition on the performance of banks in nigeria ajayi lawrence boboye obisesan oluwaseun grace department of banking and finance, faculty of management sciences, ekiti state university, adoekiti, nigeria. The economy of nigeria is a middleincome, mixed economy and emerging market, with expanding manufacturing, financial, service, communications, technology and entertainment sectors.
History of nigerias economy dated back to before independence on october 1960. It is ranked as the 27thlargest economy in the world in terms of nominal gdp, and the 24ndlargest in terms of purchasing power parity. Any merger that concerns the bank must first get prior approval of the cbn before sec approval is granted. Umoren and olokoyo 2007 studied merger and acquisition in nigeria. After independence, the nigerian economy seemed very promising. Post merger and acquisition and performance of deposit money banks in nigeria imeokparia, lawrence ph. Introduction to the history and structure of nigerian economy. The central bank of nigeria issues the national currency, the naira, which has been devalued several times since 1980. Its seven most populous cities each house more than one million people, and about one out of two west africans is from nigeria. Merger oa merger is the combination of two or more separate firms into a single firm xthe firm so formed can take any of the new identities. Although the years since nigeria s return to civilian rule in 1999 have seen an increased interest in its history and politics, nigeria remains one of the most underresearched african countries.
The nigerian economy is one of the largest in africa. Similarly, the fiscal measures introduced by the government are looked upon as hindrances or impediments, which a few may consider as irrelevant and unnecessary impositions. To do this, pre merger and post merger financial statements of two. Public disclosure authorized nigeria economic report. A century in the development of nigeria history essay.
Because this led to a great influx of rural people into the larger urban centres. In 2018 it saw the opportunity to accelerate its fiveyear plan with the merger of diamond bank, nigerians leading retail bank with 19 million customers, including. A series of unfortunate political and economic events have stalled nigerian growth. Southern nigeria was a british protectorate in the coastal areas of modernday nigeria formed. The first four waves occurred between 1897 and 1904, 1916 and 1929, 1965 and 1969, and 1984 and 1989. Laws that govern merger and acquisition in nigeria. Some merger actions are specified by law or by a regulatory body as was the case of recent bank consolidations in nigeria. First, the spread of islam began a millennium ago, predominantly in the north but later on extended to southwestern nigeria. Acquirer acquirer acquirer scenario identity acquirer target new identity. Overview of the nigerian economy african development bank. The nigerian journal of economic history njeh seeks to promote the scholarly study of africas and the developing worlds past economic issues and events from a diversity of perspectives notably those of history, economics, and other relevant disciplines. Dec 07, 2019 nigeria is sub saharan africas largest economy and relies heavily on oil as its main source of foreign exchange earnings and government revenues. Research has shown that merger waves tend to be caused by a combination of economic, regulatory, and technological shocks.
417 1691 1435 1489 567 1491 391 213 939 821 954 1313 1661 310 1644 1304 94 472 1410 363 1085 847 1365 1658 1506 411 224 850 1355 88 248 1476 288 560