The Nigerian foreign exchange market as well as the value of Naira exchange rate to other International Currencies have caused a lot of concern to warrant academic discussions. The structural imbalances, distortions and general recession in the world economy affected Nigeria's external reserve, balance of payment, Naira exchange rate, external debt, trade and_export promotions. Inspite of the various exchange rate regimes operational world over, Nigeria adopted fixed or administratively controlled exchange rate from 1958 to September 1986. However, with the operation of SAP from September 1986 to December 1993, free (floating) market determined exchange rate was adopted. The management of foreign exchange market in Nigeria, has left much to be desired. This is because, Naira witnessed the worst degree of devaluation among the world currencies since the operation of SAP. At the expense of Nigerian economy, the paralled market was the only source for obtaining sizeable volume of foreign currency at prohibitive costs. This position dealt immensely with the manufacturing sector which consumed about 60%, but contributes insignificantly to the source of forex supply. From the study, demand far outstrips the level of supply or forex thus creating undue pressures on the value of Naira. The market forces of free supply and demand of forex could not operate, to give a realistic exchange rate of Naira during the SAP period, and_even after. The search for a meaningful exchange rate of Naira would be inconclusive unless a courageous and stable v government at the centre Initiates adequate operating policies and at the same time monitorstheir implementations for desired results. The market determined exchange rate appear to have failed the Nigerian economy. The moderated purchasing power parity and managed or controlled exchange rate regime would be adequate as a solution for reasonable Naira exchange rate .