This study examines the impact of President Olusegun Obasanjo’s administration (1999-2007) on Nigeria’s foreign policy and economic development. Under Obasanjo, Nigeria shifted its foreign policy towards attracting foreign direct investment (FDI) to stimulate economic growth, adopting frameworks such as the New Partnership for Africa’s Development (NEPAD). The administration’s liberal economic policies, including deregulation and privatization, aimed at poverty eradication and national economic growth, significantly redefined Nigeria’s international relations. The research analyzes Obasanjo’s economic diplomacy, which resulted in substantial economic gains, including debt relief from the Paris Club and increased foreign investments. The study explores how these policies restored Nigeria’s international image, positioning it as a regional leader and active participant in global organizations. Utilizing a combination of historical research, semi-structured interviews, and questionnaires, the study provides a critical analysis of the nexus between Nigeria’s foreign policy and its economic development during Obasanjo’s tenure, offering insights into the transformative economic and diplomatic strategies implemented during this period.