Around the world, more companies are turning to mergers and acquisition based on recapitalization of their
sector to enter into new global markets; provide expanded services to customers; and improve operating
efficiencies. Yet, most of the organizations that fused to meet-up with these competitive challenges fail to reach
their intended objectives because merging organizations typically overlook the importance of the Human
resource factor in such arrangements. This paper examines the importance of Human resource management as a
strategic option in the Nigerian corporate environment during merger and acquisition programmes in order to
promote effectiveness and efficiencies. The study adopted both quantitative and qualitative research design,
using primary and secondary data to investigate the resultant effects of recapitalization on Human resource
management in the Nigerian Banking Industry. Some vital information were collected from relevant literatures
while questionnaires were distributed to elicit information about mergers and acquisition and its effects on
Human resource practices of the affected banks. This was complemented by Interview in the affected banks, to
determine how the consolidation exercise has expanded their service to customers and improve operating
efficiencies. Two hypotheses were formulated and tested, using chi-square inferential statistical tool to analysis
the collected data. The findings reveal that Human resource is an active agent of an organization which must be
taken into consideration before embarking on reform exercises like mergers and acquisition to improve on the
organizational performance. The study also posited that two-third of mergers ends in failure because of staff
hostility and others because of insufficient preparation and inability to integrate personnel with the new
system.Conclusively,it is important to realize how it can be difficult to drive people out of their comfort Zone
because of the fear of the unknown(change) which the workers envisage in a new Organization. However, these
changes must be communicated to the old staff in order to proffer a lasting solution to the resisters of change
through adequate participation in such mergers and acquisitions.