This study explores the complex relationship between economic dependency and third world underdevelopment in Nigeria, focusing on the Local Economic Empowerment and Development Strategy (LEEDS) in Adamawa State. Economic dependency, characterized by reliance on external aid, foreign investment, and global market fluctuations, has been a persistent challenge for Nigeria, contributing to its underdevelopment. The research employs utilizing both quantitative and qualitative methodologies to analyze the effectiveness of LEEDS in promoting local economic growth and reducing dependency. The findings reveal that while LEEDS has made some progress in fostering entrepreneurship, improving infrastructure, and enhancing educational opportunities, significant barriers remain. These include inadequate funding, poor implementation, and persistent corruption, which hinder the strategy’s full potential. The study underscores the need for a more holistic approach that not only addresses immediate economic needs but also builds sustainable local capacities. The research highlights the importance of community participation, transparency, and accountability in development initiatives. The implications of these findings are crucial for policymakers, development agencies, and scholars, emphasizing the necessity of reevaluating current economic policies and adopting more inclusive and sustainable development strategies. The study recommends strengthening local institutions, enhancing capacity-building programs, and promoting economic diversification to reduce dependency and drive long-term development in Adamawa State and Nigeria at large.