Short Term Effect of Consolidation on Capital Appreciation of Nigerian Banks

  • MR Sanni
  • SA Adereti


One of the benefits advanced to shareholders for the 2006 consolidation of banks in Nigeria was that it assures stability and potential for growth through share price appreciation. This paper reviewed, using statistical methods, the effect of the global economic crisis on share prices of select banks, and reveals that the share prices of the combined banks appreciated significantly in value, after the consolidation exercise, but nosedived as a result of the effect of the current economic crisis.