Nightly things happen on a regular basis, every single night. Your nightly exercise routine and sponge bath are good examples of this.
You can use nightly as an adjective or adverb, to describe something that occurs every night. The sun sets nightly, and most people eat dinner nightly and climb into bed nightly. Your exercise regimen might include nightly sit ups, and your dog may require nightly walks around the block. The Old English root of nightly is niht, which means both "night" and "darkness."