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The study evaluated the various debt conversion programme used by the Federal Government of Nigeria to manage the nation's external debt. It examines the problems and prospects of management techniques with a view to improving on them or possibly suggests new techniques which might be helpful in solving the external debt problem. Therefore, the research is focused on the external debt management techniques in Nigeria, with emphasis on the efforts of the central Bank of Nigeria (CBN) and the federal ministry of finance (FMF). Generally, the indebtedness of the country becomes a problem when the burden of servicing the debt becomes so heavy and unbearable that it imposes intolerable constraints on the economy and on the development efforts of the authorities.Managing the debt stock without stultifying growth has always has always been the headache of economic planners in Nigeria and other developing countries The pupation of this study constitutes the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance (FMF) records and personnel, the sample used is the representative sample. This is because the sample reflects the conditions existing in the population. A total of 20 top management personnel of both the CBN and FMF including 5 top management personnel of the Debt Conversion Committee (DCC) were sampled. In this study, two types of data were collected that is, the secondary data and the primary data. In designing the instrument, care has been taken to ensure its effectiveness, the validity of the research questions were established found reliable at r = 0.82. The result showed that the management of Nigeria's external debt via debt conversion programme is effective( χ2cal 6.545 > χ2tab value of 1.635 ;df=4; =0.05).Also, the Nigeria's debt conversion programme is realistic. (χ2cal 4.655 > χ2tab 1.635 ;df=4; =0.05). However, the study revealed that the debt conversion programme is not the final solution to Nigeria's external debt problems. (χ2cal 4.655 > χ2tab 1.635 ; df=4; =0.05). On the basis of the findings, it is therefore recommended that the debt management should be part of the macroeconomic policies of the month. The nation need not wait until there is a debt crisis before embarking on debt management. Also, accurate information on external debts should be sourced as this aids its efficient management on a day-to-day basis and external borrowing strategies in the planning framework. DOI:10.5901/mjss.2013.v4n10p216