Purpose The paper investigates how talent management influences employee performance in the banking industry in Nigeria. Despite various economic policies of the Central Bank of Nigeria aimed at reshaping the banking industry, talent management and development for the digital age is the concern of the most bank. Rapid digital transformation has been affecting the banking industry, which requires the banking industry to rethink a strategic way to achieve inclusive, resilient, and sustainable growth. Design/methodology/approach The questionnaires were used to obtain information from 302 full-time employees of the top five banks in the Nigerian banking industry. The collected data were analyzed using the Partial Least Square-Structural Equation Model (PLS-SEM). Findings This study shows that talent attraction and development significantly and positively influence task performance. In comparison, talent retention was found to have no significant effect on task performance. This study found that work engagement positively mediates talent attraction, development and task performance. Work engagement did not mediate the relationship between talent retention and task performance. Originality/value For the industry to motivate high-performing employees in this digital economy, talent management will need to be carefully designed to create the most enduring competitive advantage. In conclusion, this study will benefit the Nigerian banking industry by apprehending the predictors of task performance so that the prevalence of poor task performance among the employees is well managed.