Stakeholders predict more mergers in banking sector

In view of the ongoing merging process between Access Bank Plc and Diamond Bank Plc, industry stakeholders have predicted the emergence of more mergers in the Nigerian banking sector.

While the stakeholders see this as a good development, they are optimistic of more of such happening in the banking industry.

Even the Chartered Institute of Bankers of Nigeria (CIBN) said in its fifth annual economic outlook with the theme, ‘Implications for businesses in Nigeria 2019,’ that more mergers were feasible.

Part of the report on the economic outlook, which was presented by Olufemi Fabamwo, read, “Access Bank and Diamond Bank’s combination is expected to be consummated in 2019. Further opportunities and appetite for such mergers and acquisition in the banking sector may be witnessed.”

Similarly, the Managing Director/Chief Executive Officer of Heritage Bank, Ifie Sekibo, said there might be more mergers and acquisitions in the economy. He also added that he would be happy to see that happen, even as more investors continue to enter the country.

“We expect much more investments and i expect that as those investments take place, mergers and acquisitions may actually take place this year; both local and foreign,” Sekibo said.

Meanwhile, for the Former President of the Association of National Accountants of Nigeria, Dr Sam Nzekwe, the merger would be most welcomed if it would produce a mega bank.

“We are looking at mega banks that would be able to do their financial intermediation when they merge them, that is, borrowing money from the surplus unit and giving it to the deficit unit. That is the purpose of banking.