This retrospective study explored the multifaceted impact of foreign aid on the fiscal landscapes of Nigeria and Ghana. Through an exhaustive analysis of bilateral and multilateral aid flows, including grants, technical assistance, and loans, this research aimed to unveil how foreign aid influenced economic performance, addressing issues like poverty eradication, income inequality, and unemployment in both countries. Utilizing an ex-post facto research design, the study analyzed data spanning from 1981 to 2021, employing ARDL bounds tests and error correction models. The findings revealed distinct impacts of various types of aid on government expenditure and economic growth, demonstrating the complexity and nuanced effects of foreign assistance on the recipient countries' fiscal policies and economic outcomes.