The objective of this paper is aimed at reviewing the strategic positions of vocational education in the economic development of Nigeria vis-ö-vis the challenges encountered in its development and measures to be adopted in promoting it. The paper notes the positive relationship between vocational education and economic development in general. In order to address the issues raised in this paper as clearly as possible the paper is classified into five sections which include the introduction, review of related literature, methodology, analysis of findings, summary, conclusions and recommendations. The pattern of methodology adopted by the paper is content analysis. The paper concludes that vocational education is significantly important in human and economic development and therefore recommends that the sub-sector be strengthened and harnessed in tandem with global best practices through investment in research and development as well as diversified means of adequate funding. The curriculum of studies should be updated to conform between the demand and supply needs of both the public and private sector of the economy with a view to translating the skills acquired as well as creation of a stock of relevant human resource for overall development.