The study examined the effect of naira devaluation on profitability small and medium scale enterprise in Nigeria of a case study of some selected mini importers in Lagos, the study has the following objective. To assess the dependency level of SMEs on foreign goods and services, To determine the effect of the naira devaluation on financial performance of SMEs in Nigeria, To examine the effect of the naira devaluation on import volume of SMEs in Nigeria, To examine the effectiveness of the naira devaluation in encouraging the growth of indigenous small and medium scale business in Nigeria, concerning methodology. This study focused on the effect of the naira devaluation on the performance of small and medium scale enterprises in Lagos state; hence the population for this study is the entire city of Lagos. The respondents were drawn from business men and women mostly importers in Lagos.A total sample size of two hundred and forty (200) respondents was selected from the research population using the convenient sampling method, based on the findings, data for this study was gathered through the use of primary data (questionnaire). The questionnaire is the major instrument of data collection in this study; the study is recommended to the government and the general public that, Value Creation should be the trademark of Small and Medium Scale enterprises in Nigeria. To earn foreign exchange and encourage high export rates of our local products, business operators must think outside the box. Goods and services that can attract foreigners should be produced to reduce the effect of the naira devaluation; the government should take diversification of the economy seriously. Policies should be designed and implemented to fast track the diversification of the Nigerian economy. Oil prices should not be allowed to be the prime determinant of the value of the naira. Other areas such as agriculture, tourism, education should be explored to attract more foreign exchanges and revenue Enabling environment for business to strive should be created. Small and medium scale enterprises should be encouraged to grow and survive rather than starving it to death through under financing.