Decomposition Analysis of Poverty among Rural Farming Household in Oyo State, Nigeria

Abstract

The incidence of poverty in Nigeria is worrisome, and it has constituted a national menace. The occurrence of poverty incidence had been found to be more pronounced among Rural farming households in the country. However, paucity of data exists in terms of decomposition of household poverty into relevant subgroups using their socio-economic characteristics. Therefore, this paper assessed the decomposition analysis of poverty among rural farming Households in Oyo State, Nigeria using the data collected through a well-structured interview schedule from 170 respondents who were selected through a multi-stage sampling procedure. Data collected were described using frequency counts and percentage while poverty Indices was analyzed using Foster-Greer Thorbecke model and Decomposition analysis. The findings revealed that higher proportion (73.5%) of the respondents were above 40 years, 65.3% were male, 78.2% were married and 27.6% had secondary education, while 62.4% had household size of between 5 and 9 persons. Majority (79.4%) had farm size of more than 1.5 hectares and 62.9% had no access to remittance. Poverty incidence (P0) was 40.59%, Poverty depth/gap (P1) was 16.11% and Poverty severity (P2) was 0.09%, among the respondents using income-poverty line measure. Decomposition analysis showed that Poverty was high among households that were headed by male, young with low literacy level, and large household size. The severity of poverty was higher among households headed by labour of other farms. Effective poverty reduction strategies should therefore focus on education, livelihood diversification and control of household size.