The study investigated foreign exchange rate risk exposure and the performance of 30 ampled Nigerian companies for the period of 2002-2011. The study further investigated the difference in exposure by financial and non-financial firms. The study made use of descriptive and analytical research design and samples were drawn out of the population using random sampling method. A simple linear regression approach of measuring economic exposure as slope co-efficient of the regression of stock returns on exchange rates movements was used. The study utilized three alternative currency exchange rates, viz; the US Dollar, UK pound sterling and Euro effective record exchange rates. The study revealed that Nigerian listed companies are generally exposed to adverse exchange rate risk of the three currencies under consideration, with a higher magnitude of exposure to the US dollar. The study concluded that exchange rate instability is a significant hindrance to corporate performance. Hence, it was recommended that Nigerian companies should try and identify the kind of risk they are exposed to (translational exposure), then employ devices such as hedging, monetary balance, matching receipt and payment, Naira invoicing, currency swap among others in dealing with these risks.