Nigeria’s quest for sustainable economic development has long been tied to the strength and effectiveness of its educational system. Education is widely recognized as the cornerstone of human capital development and a driver of social and economic progress. However, despite numerous policies designed to reform and expand access to education since independence, the country continues to face persistent challenges that weaken their impact. This study examines the link between educational policies and Nigeria’s economic development, with a focus on how gaps in policy implementation undermine progress. The paper traces the historical evolution of educational policies in Nigeria, from pre-colonial indigenous systems to the colonial introduction of Western education, post-independence reforms, and recent policy shifts such as the Universal Basic Education program. It highlights the frequent changes in policies and governments, chronic underfunding, poor infrastructure, outdated curricula, and weak quality assurance mechanisms that have contributed to policy failures. Evidence shows that while education is intended to provide skilled manpower, foster innovation, and drive entrepreneurship, the disconnect between policy design and execution has limited its contribution to national growth. The findings reveal that effective policy implementation, consistent funding, and alignment of curricula with labor market demands are essential for transforming education into a catalyst for sustainable development. The study concludes that unless Nigeria prioritizes continuity, accountability, and adequate investment in its educational policies, the sector will remain unable to deliver the economic transformation the nation urgently needs.