This work reviews conceptual perspectives on mergers and acquisitions, and its impact on the Nigerian banking consolidation program. Through an exploratory research approach that relied on secondary data, relevant financial ratios were used in analyzing a five-year (2002-2007) financial statement of Skye Bank and its post-merger share price movement. An unsteady post-merger profitability was initially evident between year 2004 and 2005, however, the study shows a fairly substantial improvement in the overall financial performance of Skye Bank over the period of five years covered in the analysis. This study further analyzes relevant factors that could have enhanced an improved or unimproved post merger performance of Skye Bank. A performance summary of Skye Bank between 2008 and 2009 was also explored. The study concludes with appropriate recommendations.