Abstract Cultural diplomacy is strategic for marketing national identities and attracting international tourism inflows for economic development. Its functionality and efficiency in driving a tourism-based development in regions like Nigeria is, however, significantly marred by narrow perceptions, lack of in-depth exploration and inadequate implementation frameworks. This study, postulating a correlation between cultural diplomacy and cultural tourism development, examines Nigeria’s cultural diplomacy against the backdrop of its vast cultural resources to identifying its strengths and weaknesses in attracting culturally motivated international tourists and investors for cultural tourism-based and sustainable development. It examines relevant literature, policy documents, Nigeria’s cultural resources and currents efforts by state and non-state actors, to identify the gaps and inadequacies that must be addressed to harness the benefits of cultural diplomacy and channel them towards securing tangible economic benefits. Recommendations are made, based on the identified gaps and inadequacies. The study provides useful leads for policy action, government inter-ministerial synergy, stakeholder collaborations, and local community involvement in tourism development.