Corporate Governance and Profitability Improvement in Post-Merger Banks in Nigeria: Evidence from Recent Consolidations

This study examines the relationship between corporate governance quality and profitability improvement in post-merger Nigerian banks, drawing evidence from recent consolidation transactions. Mergers and acquisitions in the banking sector are expected to generate efficiency gains and improved performance, yet post-merger integration challenges frequently undermine the realisation of these benefits. Governance quality in the merged entity, particularly the composition of the unified board, clarity of executive roles, and effectiveness of financial oversight, is a critical determinant of post-merger performance trajectory. Drawing on merger governance theory and the resource-based view, this study evaluates governance structures and profitability trends in six post-merger banks over a three-year post-integration period. Secondary data from annual reports are supplemented by structured interviews with twelve governance professionals involved in the merger processes. Profitability is measured using return on equity, return on assets, and net interest margin. The study anticipates that banks achieving board composition clarity and unified governance frameworks within the first year of integration demonstrate faster profitability recovery. Findings will assist the Central Bank of Nigeria, bank boards, and M&A advisors in designing governance integration blueprints for future banking consolidations. Keywords: corporate governance, post-merger integration, profitability, banking sector, Nigeria.