Abstract: The main purpose of this study is to gain a better understanding of the theoretical and empirical relationship between Human Capital Development (HCD) practices and some dimensions of Organizational Effectiveness of Nigerian Banks particularly after the banking sector reforms of June 2004. Data were generated by means of two sets of questionnaire administered to some selected Banks in Lagos, Nigeria. The study generated responses from ten Banks. Responses from the survey were statistically analyzed using descriptive statistics and pearson product movement correlation. The result of the study indicates that Nigerian banks are actively involved in HCD practices. The study shows that organizational effectiveness of the selected and participating banks is to a large extent satisfactory. Obviously, involvements in HCD practices are found to correlate positively with organizational effectiveness. The implications of this study include the need to encourage Nigerian banks and indeed all organizations willing to operate effectively and efficiently in the contemporary Nigerian business arena, to devote a substantial amount of their resources on the development of human element.