Social Capital and its Influence on Poverty Reduction Among Rural Households in Ogun State, Nigeria

Abstract

This study analyzed the influence of social capital on poverty reduction in Ogun State, Nigeria. Survey was conducted on 284 households using multi-stage sampling technique. The data were analyzed applying P-alpha measure of poverty, Foster, Greer and Thorbecke (FGT) poverty indexes and multivariate regression. Mean per capita expenditure was estimated as ₦36,463.24 while the poverty incidence, gap and severity were 48.9 percent 15.9 percent and 7.08 percent respectively. Poverty incidence proved to be higher among female-headed households who had attained 60 years with members consisting of over 10 persons who had no formal education. Heterogeneity index and meeting attendance index stood at 25.6 percent and 57.4 percent respectively, while cash contribution score was unexpectedly low at 10.5 percent and mean social capital estimated at 24.24 percent. Tobit regression result indicated that the likelihood of being poor was more with large household size, age, and nativity while monthly income, per capita expenditure, attendance in meetings and heterogeneity index were shown to have negative effect on poverty. This study emphasized on active participation of households in community groups and social ties.