The study investigated possible nexus between trade liberalization and poverty alleviation in Nigeria covering the period 1986 to 2014. The Vector Error Correction model revealed that at 5% level of significance, poverty alleviation was not significantly determine by trade liberation in Nigeria in the short-run. The long run Johansen Co-integration test established the negative impact of trade openness on poverty levels. Also, diminished foreign exchange rate and increased inflation rate deleteriously increased poverty levels. The foreign direct investment however positively and significantly impacted poverty levels. The post estimation diagnostic tests confirmed that the robustness of model. The study enjoined the government to deploy fiscal monetary and trade policy measures for promoting the accumulation of domestic capital, protect infant industries and engendering property rights. Social and economic policies are also required to protect any country against the adverse effects of lowered trade barriers and the revamping of poverty alleviation programmes.