The thesis main focus concerns issues related to the distribution and utilization of foreign aid and a comaparative analysis of foreign aid in Nigeria and Ghana, which are two middle income countries in Africa. It includes it's definition, history, types and sources. Nigeria and Ghana were described in terms of general data like their history, economy, population and politics. Finally data, data gathered from reliable sources like the WHO world fact sheet, OECD and highly ranked peer review journals and books were used for the analysis and conclusion regarding the allocation and purpose of foreign aid for some African Countries.