This study examined the Impact of Exchange Rate Volatility on Nigeria Economic Growth over the period of 29 years (1987-2015). Secondary data source was explored in presenting the facts in which all Nigeria’s economic outputs were considered. The secondary data are obtained from CBN annual reports. The model for the study has its dependent variables to be the Real Gross Domestic Product (RGDP), Export and Import and its independent Variable was Exchange Rate, using Regression Model Analysis to- test the magnitude of the impact of exchange rate volatility on economic growth in Nigeria, establish whether there is a significant relationship between exchange rate volatility and exports in Nigeria and to determine what the effect of exchange rate volatility on imports in Nigeria. The result shows that there is a positive significant relationship between exchange rate and the Gross Domestic Product, there is a positive significant relationship between exchange rate and export and there is a significant positive relationship between exchange rate and import. The study recommended more diversification of the economy: an expansion in non-oil exports, adoption of measures to stimulate domestic production, and also encourage export of primary commodities in which the country has comparative advantage. An expansion in exports means an export-led growth which will in turn result in higher export multiplier (ratio of the increase in national income resulting from an increase in exports to the increase in exports) to enhance the country’s comparative advantage with a view to boosting the economy, an adoption of a realistic exchange rate for naira by the authorities which implies that the excessive demand for foreign exchange should be curbed.
