Education is seen as an instrument "per excellence" for effecting national development. Education is seen as a means of developing potentialities and capacity building. Any educational Curriculum that aims at developing human potentials must target at functionality. Functionality here refers to curriculum that is designed to teach students skills that will enable them function as competent and acceptable adults. Obviously, school environment is one of the most important factors that determine the success of a well designed curriculum. This study tries to give the concept of functional curriculum and school/ learning environment. It looks into the various ways the school curriculum can be made functional and responsive for human capacity development in Nigeria. The paper as well discuses what is expected of education/knowledge to pursue as we journey into the year 2020. The paper equally explains the challenges hindering the quick realization of functional curriculum that is expected to develop human capacity. The paper concludes and made recommendations on how to make the Nigerian school curriculum more functional for human capacity development. Such recommendations includes: (1) Provision of necessary school facilities and infrastructure; and (2) Proper curriculum assessment and monitoring of what goes on in the education sector.