This study sets out to investigate the impact of human capital investment on economic performance in Nigeria. The study employed multiple regression analysis and Wiener- Granger causality methodology using time series data from 1980 to 2012. Results show that education expenditure has significant impact on economic performance in Nigeria. Also, health care expenditure has significant effect on economic performance in Nigeria. The study equally found that there is unidirectional causality from economic performance to human capital investment only at lag 8 in Nigeria. Though human capital is not the only factor that drives a nation’s growth and development but it is undoubtedly critical in the development process. It can hardly be overstated that the under development and under-utilization of a country’s human resources will retard her economic growth and development. This is because neglecting human capital means lowering the productive capacity of an economy. In order to strengthen the country’s human capital base, the study recommends that Nigerian Government should increase and sustain education and health care expenditures especially on programmes aimed at improving education and health status of Nigerians. Presently, this study believes that education and health care expenditures are far from the optimum.

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