– Nana Ofori Kissi Ratina

“Mergers and acquisition in the banking industry are aimed at achieving economics of scale and scope” – Kaur & Kaur (2010)

Nigeria can boast of efficient and effective banking system across the West African subregion.
This did not come by itself but as a result of strict fiscal decisions that the Central Bank of Nigeria took in the late 1990s and 2000.

Consider the population of Nigeria and the number of recognized banks they have.
The banking industry in Nigeria has undergone a lot of changes and transformation in policies and operations, courtesy
of merger and acquisition.
On July 6, 2004, the Central Bank of Nigeria announced a minimum capital requirement base of banks in the country lifting up from N2 billion to N25 billion citing that cases of bank failure was the motive for the tough decision.
Few months were given for the consolidation. This called for numerous merging and acquisition moves to enable banking industry players to exist.

After the merging and acquisition moves, Nigeria Banks got power in the financial environment of the world to go beyond the national borders of Nigeria to other West African and African nations for banking business.
Access Bank, Fidelity Bank, Zenith Bank, UBA, GT Bank and others got the power to extend their tentacles and are today doing extremely well in the World’s banking environment.

Our problem in Ghana has been the politicization of every move by government. For a bank to operate, its assets including capital must exceed its liabilities.
Should the government stay aloof for Ghanaians to witness another similar bank fraud like DKM?

If merger and acquisition will enable Ghana banks to come out firmly and financially sound to compete in the World’s banking environment then we must all support it.

Let’s build Ghana beyond our territorial boundaries

Nana Ofori Kissi Ratina
Atiwa Writer