The study examines the impact of exchange rate variation on some selected macroeconomics variables; Gross Domestic Product (GDP), Balance of Payment (BOP) and Inflation Rate (INF) in Nigeria from 1988 to 2010. Three (3) models were developed with GDP, BOP and INF as dependent variables and exchange rate as explanatory variable. The study employed the ordinary least square technique as the major analytical tool. The result of study revealed that exchange rate variation impacted insignificantly on gross domestic product (GDP), balance of payments (BOP) and inflation (INF) in Nigeria within the period under review. Specifically, the R2 in the GDP, BOP and INF models were 0.42, 0.45 and 0.04 respectively. Based on the findings, the researcher concludes that diversification of productive base and employing realistic exchange rate will promote exports and discourage imports. The study, recommended that monetary authorities should establish mechanism that guarantees a stable exchange rate system.