Exchange rate volatility in Nigeria from 1980 to 2016 affects the country's balance of payments. High volatility can lead to economic imbalances, requiring devaluation and demand management. The study used the GARCH method to measure exchange rate volatility. Results show that a higher exchange rate is linked to a better balance of payments, while real GDP, inflation, and exchange rate volatility have a negative impact. To improve the balance of payments, the government should address exchange rate volatility and promote exports to maintain a trade surplus and strengthen the domestic currency.