Bank consolidation has been the major policy instrument adopted in correcting deficiencies in the financial sector in the world all over; and hence the 2005 concluded bank consolidation exercise in Nigeria. This study therefore, x-rayed the effect of bank consolidation on cost savings for consolidated banks in Nigeria. The research design is ex-post facto studying two periods before and after the 2005 concluded bank consolidation exercise in Nigeria. The Cost Income Ratio (CIR) was used as a proxy to measure cost savings for six banks quoted on the Nigerian Stock Exchange for a 10-year period (2000-2009). Descriptive statistics was used to analyze the operational variable (CIR). The sampled banks five years performance before the consolidation exercise was compared to the banks five years performance after the consolidation exercise. The paired sample t-test statistics was used to test the formulated hypothesis for a significant difference between the means of the two sample periods (pre and post consolidation) observed at two points in time. The findings revealed that the sampled banks recorded decreases and increases in the operating variable at various intervals of the pre and post consolidation periods. However, two banks had significant differences on costs saving. Accordingly, the study revealed that the 2005 concluded bank consolidation exercise in Nigeria has not achieved costs saving for all the consolidated banks in Nigeria. Therefore, forced consolidation is not the best option for reducing banks’ operational cost.