Abstract: Improvement in health service delivery is a necessity condition for the enhancement in Human Capital Development and high level of life expectancy. However, this is very hard to achieve especially in developing countries. Therefore, this study examined the relationship between life expectancy and Government Expenditure in Nigeria between 1980 and 2015. The data for the study were sourced from Central Bank of Nigeria and Bureau of Statistics Annual Reports. Vector Autoregressive Distributive Model (VAR) was used as estimation technique. Results from forecast Error Variance Decomposition showed that the highest shocks to the life expectancy were accounted for by the share of government expenditure. The second in rank was the number of physicians and carbon dioxide also contributed immensely to low life expectancy in Nigeria. From the results, the contribution of real growth rate of income was indirect and marginal. Other variables such as Death and Birth rate did not contribute significantly to the life expectancy in Nigeria during the study period. Based on these findings, it is recommended that for life expectancy to increase in Nigeria, the share of government expenditure on health should increase and that plantation of grasses and trees should be encouraged to reduce the effect of carbon dioxide.