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Employee training has been identified as an important factor in the survival of banking business, particularly in a globally competitive economy with uncertainty as in Nigeria. The Nigerian banking industry faces a number of challenges in relation to employee development. This study investigated the effects of training and manpower development on employee performance in Nigerian banking industry. The survey research design was used. The population of the study comprised 30,006 employees in the Nigerian banking industry from which a sample of 379 respondents was selected using purposive sampling technique. The population was broken into various strata in line with the hierarchy of office seniority. The study concluded that there is need for the Nigerian banking industry to adopt manpower training as an innovative tool for improving employee performance in today's dynamic banking environment.