EFFECT OF REGULATORY FRAMEWORK ON THE PERFORMANCE OF MERGERS AND ACQUISITIONS IN THE NIGERIAN BANKING SECTOR

Abstract

This study investigates the impact of regulatory frameworks on the performance of mergers and acquisitions (M&A) in Nigeria, with a specific focus on legal frameworks, approval processes, and antitrust and competition laws. The objectives are to examine how these regulatory components influence the success and sustainability of M&A activities. A descriptive correlational quantitative research design was adopted, targeting professionals involved in M&A transactions such as regulators, legal experts, and corporate executives. Using a structured questionnaire based on a five-point Likert scale, data were collected from a non-probability sample of 100 respondents. In this study, expert review process was used to ensure validity and reliability was ensured using Cronbach's alpha, respectively. Data analysis was conducted using SPSS version 25.0, employing descriptive statistics and multiple regression analysis. Findings reveal that all three regulatory components- legal framework, approval processes and anti-trust competition laws significantly and positively affect M&A performance, with the legal framework having the most substantial impact (B = 1.16, p < .001). The model explains approximately 86% of the variation in M&A performance (R2 = 0.8559), confirming the robustness of the predictors. The study concludes that transparent and well-enforced regulations enhance M&A outcomes in Nigeria. The study recommends that regulatory bodies such as the Securities and Exchange Commission (SEC) and the Federal Competition and Consumer Protection Commission (FCCPC prioritize reforms and enforcement mechanisms that enhance the clarity, efficiency, and consistency of M&A regulations. Strengthening legal provisions and reducing bureaucratic delays in approval processes will improve deal execution and post-merger integration outcomes. Additionally, continuous enforcement of antitrust and competition laws is essential to prevent monopolistic practices and ensure a level playing field for all market participants.. Future studies should consider institutional capacity and post-merger evaluation mechanisms.