This study examines the effect of healthcare financing on human development in West African countries from 2000 to 2022. The objective is to assess the roles of public, private, and external health expenditures alongside GDP per capita and institutional quality in shaping human development. Using Panel ARDL methodology of pooled mean group, mean group, dynamic fixed effect and Hausman test. Findings indicates that in the long run, private health expenditure significantly improves human development by 5%, while public and external health expenditures though improving it by 2% and 1% are insignificant. Also, Institutional quality and GDP per capita show no significant long-term effects on human development. Short-run results reveal limited and inconsistent effects of health expenditures, and institutional quality, while only GDP per capita significantly impacts human development in the short run, with error correction terms of 8.97% for human development, suggesting slow adjustment to equilibrium. The study recommends enhancing public spending efficiency, incentivizing private healthcare investment, strategically leveraging external funding for capacity building and Institutional reforms to improve governance, transparency, and resource allocation. The conclusion emphasizes that sustainable development in West Africa requires integrating health investments with broader socio-economic and governance reforms to ensure impactful and equitable outcomes.