This study used the autoregressive distributed lag/Bounds test model to investigate the effect of public health expenditure on income inequality in Nigeria. Annual time series data from the World Income Inequality Database (WIID, World Development Indicators (WDI), and Central Bank of Nigeria (CBN) were used for the period 1980 and 2019. The results revealed that nine independent variables have positive, and four variables have negative and significant impacts on income inequality. The variables with positive impact include current-year variables for total public expenditure, urbanization, and real gross domestic product, one-year lag for public recurrent and public capital expenditures on health, one to three-year lag of public expenditure as well as the third-year lag of real gross domestic product. On the other hand, current period variables for public recurrent and public capital expenditures on health and first and second-year lags of real gross domestic product have a negative impact on income inequality. The results also showed that the long and short-run trends of income inequality are positive and significant. The study recommended the close monitoring of government health expenditure and doubling the efforts to grow the economy given that increased gross domestic product reduces income inequality.