This study identified how banks are being faced with the challenges of inadequate supervision, planned inappropriate operations, failure to correct known problems and supervisory violation. The main objective of this study is to examine the influence of supervision on organizational efficiency in the Nigerian Banking Sector. The study adopted exploratory research design; the population is made up of the entire staff of UBA/First Bank, Mubi which is made up of 71 staff. The instrument used for collecting data from the respondents is the questionnaire, and the data collected from the respondent was analyzed using percentage analysis. The Pearson Correlation shows the relationship between the variables there is relationship between autocratic supervision, independence supervision, democratic supervision and organizational efficiency since (R = 0.882, 0.324, 0.999, and P < 0.05). The finding revealed that banking sec supervisors mainly rely on threats and punishment to influence employees performance, supervisors don’t allow employees inputs in decision making. The finding further revealed that supervisors feel that autocratic supervision is not bad for their subordinates. Finding shows that autocratic practices of their supervisors make them to have less or no self-confidence, because their supervisors don’t appreciate their skilled, experienced and education. The study therefore, recommends that there is need for management of banking sector to understand that relying on threat and punishment to influence employees is not the best method to increase performance; there are many ways in which employee can increase their performance. The management can decide to give employee opportunities to participate in decision making and appreciating their kills, experience and education will make them to have self-confidence and will inturn enable them to increase the level of their productivity.