Impact of Merger and Acquisition on Customer Service Quality of Deposit Money Banks in Nigeria

Abstract

Merger and acquisition (M&A) perform a vital role in corporate finance by enabling firms achieve varied objectives and financial strategies. In Nigeria, banks have been merging with the goal of improving their performance. Hence, this study examined the effects of merger and acquisition on customer service quality of deposit money banks in Nigeria from 2006 to 2017. Primary data were used in this study. Primary data were sourced through administration of 350 copies of structured questionnaires on the customers of seven (7) sampled banks out of a population of 14 listed deposit money banks. Structural equation model was employed to evaluate the effects of merger and acquisition on customers’ service quality in the Nigerian deposit money banks. The result revealed strong strategic relationship between merger and acquisition and customer service quality and this resulted in sustenance of the banks’ efficiency in service delivery to customers. The conclusion drawn was that merger and acquisition (M&A) had positive significant impact on performance of deposit money banks in Nigeria in terms of customers’ service quality (CSQ). It is therefore recommended that, managers of banks should pay particular attention to all service quality dimension and institute appropriate measures to deal with factors that militate against the delivery of services that delight customers and banks should be more aggressive in financial products marketing to increase financial performance thereby reaping the benefit of post- consolidation exercise.