For a couple of years, there has been a debate as to whether currency depreciation affects stock market performance.  This study was carried out to investigate this phenomenon and determine the extent to which this is true.  The study utilizes the expost facto research design method since the data involved are secondary data drawn from the Central Bank of Nigeria Statistical bulletin and annual reports of the Nigeria stock exchange.  The period span form 1994 – 2024 and the Ordinary Least Square (OLS) as well as descriptive and correlation matrix were utilized to analyse the data.  The data were also subjected to pairwise granger causality test to show any unidirectional or bidirectional relationship of the variables. The results shows that exchange rate was negatively significant to currency depreciation while others were positively significant within the period of the study/.  It was therefore recommended among others that the federal government should implement robust monetary policy focused on stabilizing the naira to avoid sharp exchange rate volatility and currency depreciation which could impact capital market adversely due to capital flight.

Keywords: Market Capitalization, Prime Lending rate, Exchange Rate, Inflation, External Reserve.