This paper examined the impact of labour on the formal human capital development of children. The data used for the study was obtained from the 2001 Child Labour Survey conducted by the then Federal Office of Statistics (now National Bureau of Statistics) Data size comprised 20,830 household units with 100,785 individuals of which 25,542 were children between 5 and 17 years. The data were analyzed using sequential probit model. The age of a child was found to be an important determinant of participation in paid employment and enrolment at school as older children were found to be more enrolled than younger ones. Older children were able to combine school with work as it was easier for them to manoeuvre between the two activities. Gender of a child showed that the male children were more favoured in terms of schooling activity. The marginal effect showed that for every six children enrolled, five were males. A biological child of a household head had a greater chance of attending school than a non-biological child.