This study investigates the impact of foreign aid on economic growth and poverty alleviation in Nigeria, a country grappling with persistent economic challenges despite its wealth of natural resources. Using the Autoregressive Distributed Lag (ARDL) model, the research examines both short-term and long-term effects of foreign aid, incorporating variables such as savings, government expenditure, foreign direct investment, inflation, and population growth. Findings indicate that foreign aid initially stimulates economic growth in the short run but may lead to dependency and inefficiencies over time. Additionally, the study highlights that inflation exacerbates poverty by eroding real income, while corruption undermines the effectiveness of foreign aid. The results emphasize the need for strategic policy interventions, including anti-corruption measures, stable monetary policies, economic diversification, and investments in human capital. The study concludes with recommendations aimed at fostering sustainable development and reducing poverty through more effective and transparent economic planning in Nigeria.