This paper explores the efficacy of liquidity management and banking performance in Nigeria. It is aimed at examining empirically the effect of efficient liquidity management on banking performance in Nigeria particularly in the aftermath of several banking reforms, rescue mission by the Central bank of Nigeria (CBN) and the attendant Merger and Acquisitions. Profitability and Return on Capital Employed (ROCE) were adopted as our performance indicators or dependent variables. The research design is survey design, accomplished through the administration of structured questionnaires. Data obtained were first presented in tables of percentages and pie charts and were empirically analyzed by Pearson product-moment correlation coefficient (r). Findings from the empirical analysis were quite robust and clearly indicate that there is significant relationship between efficient liquidity management and banking performance and that efficient liquidity management enhance the soundness of bank. These findings which may have re-echoed results from similar researches re-emphasize that efficient liquidity management have important policy implications for developing and emerging economies. Considering the systemic consequences of liquidity problems, it is recommended that a more professional approach should be taken in its management. Keywords: Liquidity, Management, Banking, Performance, Nigeria.