Abstract
This study examines the impact of bank consolidation on unemployment in Nigeria, analyzing key macroeconomic variables such as lending interest rates, inflation, credit availability, and economic growth. The findings indicate that bank consolidation has a significant positive relationship with unemployment, suggesting that mergers and downsizing contribute to job losses. Conversely, credit availability and economic growth exhibit a negative relationship with unemployment, highlighting their crucial role in job creation.
Policy recommendations include implementing job protection strategies during bank consolidations, enhancing access to credit for small and medium enterprises (SMEs), promoting economic growth through investment in key sectors, and improving labor market flexibility. Although lending interest rates and inflation were not found to have a significant direct impact on unemployment, maintaining economic stability remains essential.
The study concludes that while bank consolidation poses employment challenges, targeted policies that improve financial access, stimulate growth, and support workforce adaptation can mitigate its negative effects. A balanced approach to economic restructuring is necessary to foster a resilient labor market and sustainable job creation in Nigeria.
