Chapter One — 1.1 Background to the Study

Economic Diplomacy has increasingly attracted the attention of researchers, regulators, and practitioners concerned with bilateral relations. This growing interest reflects the recognition that economic diplomacy does not operate in isolation, but interacts with a wider set of institutional and market conditions found within Selected Federal Government Parastatals in Nigeria.

Selected Federal Government Parastatals in Nigeria presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

While economic diplomacy is widely discussed in policy and industry circles, empirical evidence on its actual effect on bilateral relations within Selected Federal Government Parastatals in Nigeria remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to economic diplomacy are helping or hindering bilateral relations — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Economic Diplomacy on bilateral relations in Selected Federal Government Parastatals in Nigeria.
2. To assess the extent to which economic diplomacy influences bilateral relations within the study area.
3. To identify the challenges associated with economic diplomacy in relation to bilateral relations.
4. To recommend strategies for optimizing economic diplomacy in order to improve bilateral relations.

1.4 Research Questions

1. What is the effect of economic diplomacy on bilateral relations in Selected Federal Government Parastatals in Nigeria?
2. To what extent does economic diplomacy influence bilateral relations within the study area?
3. What challenges are associated with economic diplomacy in relation to bilateral relations?
4. What strategies can be adopted to optimize economic diplomacy in order to improve bilateral relations?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around bilateral relations. For managers and practitioners within Selected Federal Government Parastatals in Nigeria, the study provides practical insight into how economic diplomacy can be better managed. Finally, it contributes to the academic literature on international relations and diplomacy by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

The study is limited to an examination of Economic Diplomacy and its relationship with bilateral relations within the context of Selected Federal Government Parastatals in Nigeria. It reflects a clearly defined scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.