Mergers and acquisitions are fast becoming worldwide commercial phenomenon and therefore not new concepts when it comes to business reconstruction. However the growing popularity of these twin concepts in Nigeria business climate has been attributed to three major factors, namely; the banking re-capitalization policy of Central Bank of Nigeria (CBN), the harsh business environment in which only mega, strong and broad financial based companies can dare to survive and thirdly the on-going policies of the Nigerian government to drive direct foreign investment. This paper is therefore divided into three major parts. The first part briefly examines the meaning, the differences and factors driving the accelerated rates of mergers and acquisitions in Nigeria. The second part discusses the regulatory framework and legislations governing mergers and acquisition in Nigeria and the final part consider the various legal issues usually overlooked during company reconstruction through mergers and acquisitions.