This study examines the interactions between the general price level and foreign exchange rate in Nigeria. This was aimed at ascertaining if inflation was imported via the foreign exchange rate in Nigeria. The theoretical underpinning of this study was anchored on the purchasing power parity theory. The ex-post facto research design was adopted to observe the study variables in retrospect. Thus, historical data covering 1990 to 2018 was collated and estimated employing the error correction technique. The test results indicates that foreign exchange rate exert a positive and insignificant influence on the level of inflation in Nigeria. This stand to suggest that a benign level of change in the general price level is caused by imported inflation. Evidence further indicates that lending interest rate exerts a negative and significant impact on the level of inflation in Nigeria. The study concludes that persistent increase in foreign exchange rate stimulate increase in the general price level, whilst that of the lending interest rate has no bearing on the general price level in Nigeria. The policy implication of this is for the monetary authorities to ensure foreign exchange rate stability to avoid imported inflation. Also, the lending interest rate be made attractive enough to drive aggregate demand and not too unattractive to slow down aggregate demand. The study therefore recommends a stable and strong international and domestic value of the naira via a policy of stability.