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This study, was carried out to ascertain the effect of exchange rate variation on balance of payment in Nigeria from (1979 – 2008) exchange rate and interest rate used as a proxy for the balance of payment in Nigeria. Policy makers and some researcher s argued on exchange rate variations having a significant factor. Some have found negative, positive, significant and insignificant result on the impact of exchange rate variations on the balance payment. The F – test result suggested that the model is statistically significant. Based on this work, using econometric test of co integration we achieved that there is positive and significant relationship between exchange rate and balance of payment in Nigerian economy. This means that the exchange rate is not a major problem facing the balance of payment, other variables like money supply interest rate can affect the balance of payment. The R2 is used for solving the level of change which can be accounted for in the independent variable. This study recommends that the exchange rate value needs to be sustained at free market

Bank: GTBank
Account Name: Prince Orafu
Account Number: 0109980866

Bank: Diamond Bank
Account Name: Prince Orafu
Account Number: 0065070861

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