Study of the Effect of Corporate Restructuring on Employee Morale in Nigerian Banks Post-2024 Recapitalisation

The Central Bank of Nigeria's 2023 recapitalisation directive triggered significant corporate restructuring across the banking sector, and examining its effect on employee morale in affected institutions provides timely evidence for human resources management during organisational change. This study examined the effect of merger, acquisition, and rights issue restructuring activities on employee morale among bank workers in Lagos and Abuja during the 2024 recapitalisation period. A survey of 220 employees from five restructured banks was conducted. Morale dimensions assessed included job security perception, management communication quality, workload changes, and career opportunity uncertainty. Morale was measured using the Morse Job Satisfaction Scale adapted for restructuring contexts. Independent samples t-tests and regression analysis were employed. Results showed that 68% of employees reported reduced morale during the restructuring period. Job security anxiety was the strongest morale depressant (beta = -0.54, p < 0.001). Banks that maintained regular management communication during restructuring showed 31% higher employee morale scores than those with communication blackouts. Employees who perceived clear career pathways post-restructuring showed significantly higher morale than those without career clarity (mean: 3.6 vs. 2.4 out of 5). Union membership moderated the job security-morale relationship positively. The study concludes that communication quality and career path transparency are the most critical management interventions for sustaining employee morale during bank restructuring, and recommends dedicated change management communication programmes for all Nigerian banks undergoing the 2024 recapitalisation process. Keywords: corporate restructuring, employee morale, bank recapitalisation, organisational change, Nigeria