Exchange rate fluctuations in Nigeria have a significant impact on industrial output growth. The study analyzed data from 1986 to 2015 using statistical models to show that changes in exchange rates directly affect industrial output. The results indicate that exchange rate shocks have a positive and significant effect on industrial output, especially in the initial years. Other variables like inflation and interest rates have less impact compared to exchange rates. The study suggests that managing exchange rates properly and strengthening the link between agriculture and the industrial sector can help reduce the sector's reliance on imported inputs.