The competency-based management system has grown to become one of the most influential HRM tools of the 21st century. However, there remains limited empirical data addressing the relationship between the adoption of a competency framework and organizational performance. The study reported upon in this paper is based within the Nigerian banking sector. A qualitative methodological approach was adopted, employing interviews with employees of the top ten high street banks in Nigeria. The result of the field data was subsequently analyzed using NVivo in order to achieve the aim of the research. The findings revealed that competency-based management frameworks are being used and that indeed they are a key management tool within the selected Nigerian banks. Importantly, the findings clearly suggest the adopted competency frameworks are having a positive impact on the banks’ performance.