Keywords: Poverty status, rural households, assets, asset index approach.


Examination of the characteristics and causes of poverty is an important input into the design of economic policy and poverty alleviation programmes. This study assessed the poverty status of rural households in Ogun State, using the Asset Index Approach due to shortcomings of the conventional methods in poverty analysis. Relevant data were collected from a total of 260 households using a four-stage sampling procedure. The data were analyzed using principal component and ordered probit regression analyses (OPRA). The results showed that the OPRA, which significantly (χ2 = 135.20, p < 0.01) explained the probability of a household escaping poverty, revealed that the primary occupation of household heads and the educational status of household heads and their wives among others factors significantly affect the likelihood of escaping poverty. The study therefore suggested that the economic situation of rural households can be considerably enhanced by promoting member’s access to qualitative education and also by encouraging household heads who take up farming activities as their primary occupation to participate in credit associations, indigenous savings and micro financing so as to boost their farming. Therefore, rural development policies should be tailored towards developing these facilities.


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