It is argued that while increase in budgetary allocation to social services is highly desirable, it is not sufficient to guarantee enhancement in better health outcome. This paper links public health expenditure, economic growth and health outcomes and the causality among them using Nigeria data. The finding suggests increase in public health expenditure has decreased infant mortality rate while infant mortality rate is negatively correlated with economic growth. Interestingly, the direction of causality among public health expenditure, infant mortality rate and growth is unidirectional, from public health expenditure to growth. Contribution/Originality: This is one of the few studies which have investigated public health expenditure, economic growth and health outcomes (infant mortality rate) in Nigeria. 1. INTRODUCTION Health undoubtedly is one of the most important factors that determine the quality of human capital, a necessary factor for economic growth. Therefore, any public expenditure on health can be viewed as a form of investment in the overall health status of a nation (Dang et al., 2016). A consensus of opinion have been formed among researchers recognizing health as a public good, the demand and supply of which cannot be left at the mercy of invisible hands or profit maximizing individual as well as on considerations of utility maximizing conduct alone. The recognition of the above led the World Health Organization (WHO) to propose at the 2010 World Health Assembly, issues that will address financing of health, which will ensure qualitative and affordable healthcare services. Riman and Akpan (2012) also alludes that the pattern of health financing is closely and indivisibly linked to the quality of health outcomes, capable of achieving the long term goal of enhancing nation's economic development. Health care financing does not only involve how to raise sufficient resources to finance health care needs, but also on how to ensure affordability and accessibility of healthcare services, equity in access to medical services as well as guarantee financial risk protection. Carrin et al. (2007), Riman et al.