This study seek to amplify the chemistry between foreign direct investment, exchange rate, interest rate and economic development in Nigeria between the periods 1986 to 2015 using Auto Regressive Distributive Lag model. From the statistical report, we discovered that foreign direct investment and interest rate exhibit a direct relationship to economic development in Nigeria. Study further suggest that the low rate of interest promote investment paradox and thus stimulate economic development in Nigeria while the report from the exchange rate shows that if exchange rate is appreciating, economic development is been stimulated. This therefore suggest that an appreciating exchange rate is capable of attracting foreign investors and thus promote economic development as the case may be. The interrelationship between exchange rate, foreign investment and economic development is expected to be direct accordingly such that rise in exchange rate attract foreign investment and thus promote economic development in Nigeria. The policy implication is that if Exchange Rate appreciates, then Naira will be cheap relative to other currencies, this can attract Foreign Direct Investment inflow into the Nigerian economy through the window of reduce Naira value and cheap investment in Nigeria. Based on this findings, study recommends that authorities in charge of managing the Nigerian economy should as a matter of urgency revamp the lending habit by introducing low interest rate as this will make it cheaper to borrow and this encourages spending and investment lending to higher aggregate demand which will further stimulate economic development.