The study looked at how efficient the foreign exchange market is in Nigeria and if past exchange rates affect current ones. They used data from 1985 to 2016 and analyzed it using a special statistical method. The results showed that oil prices, GDP, inflation rate, and interest rates all have a positive impact on exchange rates, while broad money supply has a negative impact. Surprisingly, previous exchange rate returns do not have a significant effect on current ones. This means that the exchange rate market in Nigeria is not working as well as it should. To improve the situation, the researchers suggest being more transparent in setting exchange rates, following strict monetary policies, and diversifying the economy.