This paper investigated the effect of currency devaluation on the economic growth of Nigeria. Specific objectives of the study were; to examine the relationship between currency devaluation and the following variables, the real gross domestic product, Nigerian external debt, and private domestic investment in Nigeria. This was achieved through a review of related literature and a test of hypothesis. This study relied on time series data generated for a period of 16 years, from 2000-2015. The Ordinary Least Square (OLS) regression method and the computer software application E-views 8.0 were used for the analysis. The result of the analysis which is in line with the a priori expectation shows that: there is a significant relationship between Currency devaluation and real GDP in Nigeria; there is a significant relationship between Currency devaluation and external debt in Nigeria and there is no significant relationship between Currency devaluation and private domestic investment in Nigeria. Thus currency devaluation reduces importation encourages exportation and increases interest rate. Inflation and unemployment are the side effects of devaluation in the short run. It is recommended that discretionary policies, such as combination of monetary and fiscal measures should be utilized to curb the associated increase in inflation; while currency devaluation should be the last measure to be taken by the Nigerian government to bring the country out of recession.