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The study is set out to investigate the Balance of Payments Equilibrium position in Nigeria by testing the Marshall-Lerner condition using the Sodesten and Reed Approach to model the balance of payments. The methodology involves descriptive statistics and econometric methods. Specifically, the study used Vector Error Correction (VEC) method, testing the data property with the help of the Augmented Dickey Fuller (ADF) test and the Philip Perron test. The cointegration method was used to extract both the short and the long run relationships between balance of trade equation and the endogenous variables in the model. The results of the study support systematic currency depreciation in order to improve Nigeria trade balance vis-à-vis the rest of the world. However, massive currency appreciation may be detrimental to the health of the external sector as a result of exportable commodity constraint. Nigeria export basket is dominated by crude oil whose price is predetermined in the global oil market and may not respond to local currency depreciation