You want to do builds on a regular schedule in order to catch problems with integration of code between developers. The reason you want to do this nightly, as opposed to weekly or on some longer schedule, is that the longer you wait to discover these kinds of problems, the more difficult it will be to resolve them. The practice of doing a build on every check in (Continuous Integration) is just taking the nightly build process to a logical extreme.
The side benefit of having a repeatable build process is important in the long run as well. If you work on a team where there are multiple projects going on, then at some point you will need to be able to easily recreate an old build, perhaps for creating a patch. :(
The more you can automate the build process, the more time you will save for each subsequent build. It also takes the build process itself off of the critical path of delivering the final product, which should make your manager happy. :)
