Human capital consists of two components; one is education and the other is health. It is surprising that health, which is another component of human capital has been largely underestimated in the development studies. Moreover, among few studies that has been carried out on health expenditure as it’s relates to economic development has shown an absence of consensus in regards to the effect of health care expenditure on economic development as well as their relationship in Nigeria. This Study examines the Health care Expenditure and Economic development Nexus in Nigeria, using annual time series data from 1995 to 2021. Real gross domestic product was used as proxy for economic development, while the independent variables are per capita health expenditure, improved sanitation facilities and improved water were sourced from World Bank’s Development Indicators 2023. The Cointegration, Error Correction Mechanism and Granger Causality techniques were employed in analyzing annual time series data. The study indicates an evidence of long run equilibrium relationship between economic development and health care expenditure. The Granger Causality test also shows that health expenditure granger causes economic development. Implying that increase in health expenditure will bring about increase in the economic development. The major policy implication of the study is that, more economic development can be achieved by improving the health care expenditure. Therefore, the study recommend that more funds should allocated to health sector as it pays back in increase in economic development.