This study examines the relationship between educational Sector financing and economic wellbeing in Nigeria, focusing on government funding, private domestic investment, and foreign expenditure in education. The study employs econometric techniques to analyze the long-term dynamics of educational financing on the Human Development Index (HDI). The findings reveal a significant increase in educational financing activities over time, particularly in domestic funding. However, despite the growth in funding, there is evidence of underemployment among educated individuals, suggesting a disconnect between educational investments and economic outcomes. Co-integration analysis indicates a long-term relationship between government educational financing and human development. The reliance on government funding for education underscores the need for effective resource management and targeted interventions to address gaps in the education system.

Keywords: Educational financing, economic development, Nigeria, government funding, private investment.