Nigeria’s Debt Diplomacy: Managing External Borrowing and International Creditor Relations

This study examines the diplomatic dimensions of Nigeria's external debt management, investigating how the country manages relationships with multilateral creditors, bilateral lenders, and commercial bondholders as part of its broader foreign policy and economic diplomacy. Nigeria's external debt profile has grown significantly since 2016, with major creditors including the World Bank, African Development Bank, China Exim Bank, and international commercial markets. Managing these relationships requires coordinated diplomatic engagement, transparent communication, and strategic negotiation of terms. Drawing on international political economy and debt diplomacy theory, this research analyses Nigeria's engagement with its principal creditors from 2019 to 2024, examining renegotiation episodes, debt relief requests, and Nigeria's positions in multilateral debt governance forums including the G20 Common Framework. The study employs a qualitative methodology, drawing on Debt Management Office (DMO) reports, bilateral correspondence, parliamentary appropriation debates, and expert interviews with economists and legal advisors involved in Nigeria's debt transactions. Findings are expected to show that Nigeria's debt diplomacy lacks a coherent strategic framework, leading to inconsistent creditor relations and vulnerability to adverse loan restructuring outcomes. Recommendations address the institutionalisation of a coordinated debt diplomacy strategy. Keywords: debt diplomacy, Nigeria, external borrowing, creditor relations, economic diplomacy.