This study examined the relationship between human resource expenditure and productivity of Universities in Nigeria. It investigated the effect of salaries and wages, training and development costs (used as proxy for human resource expenditure) on the productivity of universities. Secondary data was collected for a period of ten years from 2002 to 2011. Multiple regression analysis was used to test the hypotheses, using productivity of universities (as the dependent variable) and salaries and wages, and training and development costs (as independent variables). An investigation was undertaken into the possible relationship between productivity of universities (PRODU) and two components of human resource expenditure: salaries and wages (SAWAS), and training and development cost (TADEC). The findings of this study showed positive correlation between human resource expenditure and productivity of universities. The study recommended that the management of universities in Nigeria should adopt staff welfare and incentive schemes to motivate their workforce to improve productivity in the university system.