The study looked at whether the real exchange rate misalignment in Nigeria can predict currency crises. They used various economic indicators to create a model that predicts the likelihood of a crisis happening. The results showed that when the real exchange rate is misaligned, the chances of a currency crisis increase. Other factors like volatile exchange rates, falling oil prices, rising debt, and declining current account balance also contribute to the risk of a crisis. The study suggests that monitoring the Naira's value compared to its ideal level can help prevent or address currency crises in Nigeria.