The Impact of Public Relations on Performance of Nigerian Banks after Mergers and Acquisitions.


The harsh realities of corporate existence make it necessary for public relations practitioners to demonstrate the worth of what they do.

Every aspect of organizational activity, particularly in difficult economic situations, is measured by its relative benefit to the firm.

A public relations department that cannot demonstrate value to the organization will not be in a position to influence the policy decisions that affect its own fate especially at such crucial times as when mergers and acquisition have occurred.

Mergers and acquisition or any other form of consolidation may influence bank interest rates, competition and transmission mechanism of monetary policy in so far as the increase in size and the opportunity for reorganization involved may either provide gains in efficiency that bear on marginal costs or give rise to increase in market power, or both.

Gains in efficiency would be obtained in moving on to greater scale of activity. Moreover, the primary role of banking institution is intermediating fund from the surplus unit to the deficit unit.

In the presence of increased competition and reduced number of banks, there is every tendency for these banks to engage in activities that yield higher return irrespective of whether these activities promote the primary intermediation role.

The consequences of this, is that consolidation may or may not yield greater financial intermediation or reduce the banks to a mere financial investment.

Since the essence of any reform is to bring greater efficiency not only in the operation but also their contributory role to the overall economy, banks needs to build a good public relations units to help allay fears of stakeholders as well as assisting to cultivate a mutually beneficial relationship with customers.

It is against this background that this study sought to: analyze the significance of public relations efforts in cultivating a mutually beneficial relationship with customers after mergers and acquisition among Nigerian Banks;

gauge if practitioners and/or management considers public relations as a crucial element for business success after mergers and acquisition among Nigeria Banks and examine whether public relations plays a major role in handling issues after mergers and acquisition among Nigerian Banks.


Background Of Study

Palaniappan and Ramachandraiah (2008) posit that public relations came into prominence when Thomas Jefferson in 1807 used the phrase Public relations in place of State of thought while writing his seventh address to the US Congress and also traced the word public relations to India,

where the Great Indian Peninsular Railway Company Limited (GIP Railways) carried on publicity in Public Relations campaign in England to promote tourism to India through mass media and pamphlets.

During the time of First World War a central publicity board was set up at Bombay (now Mumbai) for disseminating war news to the public and press.

After Second World War the Public Relations activity gained importance both privates as well as Government started Public Relations campaigns (see, Palaniappan and Ramachandraiah, 2008).

Since this earlier use, public relations have gained importance in marketing and promotions as it serves as means of promoting goods and services of organisations.

Investing on Public relations will help the organisation to achieve its objective effectively and smoothly. Public Relations is not creating good image for a bad team. Since false image cannot be sustained for a long time.

Though the organisation product or services are good it need an effective Public Relations campaign for attracting, motivating the public to the product or service or towards the purpose of the programme.

It not only encourages the involvement from the public but also resulting in better image. Effective Public Relations can create and build up the image of an individual or an organisation or a nation at the time of adverse publicity or when the organisation is under crisis.

Effective Public Relations can remove the misunderstanding and can create mutual understanding between the organisation and the public.


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Akhavin, J. D., A. N. Berger and D. B. Humphrey (1997), “The Effects of Mega mergers on Efficiency and Prices: Evidence from a Bank Profit Function.” Review of Industrial Organization 12, pp 95-135

Alexander, D. (2004), “Changing the public relations curriculum: a new challenge for educators”Prism   Online  PR Journal (Accessed 24 October 2011 Alexander.pdf.

Alfonso, G.-H., and R. de Valbuena Miguel (2006), “Trends in online media relations: Web- based corporate press rooms in leading international Companies” Public Relations Review. (Electronic version) 32, pp. 267–275

Badaracco, C. (2007), Public Relations Online: Lasting Concepts for Changing Media, California, Sage

Beckerman, G. (2007), “The new Arab conversation” Columbia Journalism Review, 45, pp. 17– 23

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