Analysis of income inequality and poverty dynamics among rural households in Suleja Local Government Area of Niger State, Nigeria.

Abstract

The study employed primary data with the aid of structured questionnaire while a multi-stage random sampling technique was used to select 80 rural households in the area. The analytical techniques involved the use of descriptive statistics, Gini coefficient and Freer, Greer and Thorbecke Poverty Index. The results revealed a mean age of 54years with male headed household (89%) prevalence in the area. Majority (98%) were married with average household size of 6 persons. The analysis of income distribution showed mean income/month of ₦23,139.24 and mean per capita income of ₦7.251.90/month. Gini coefficient value of 0.46 revealed even distribution of income among the households. In addition, majority (86%)of the rural households lived below $1per day. Furthermore, the poverty incidence, depth and severity were 58%, 21% and 13%, respectively. The results of logit regression analysis revealed diversification index (P < 0.10), years of experience (P < 0.05) and access to credit (P < 0.10) as the main determinants of poverty status of the households. Based on the results, this study therefore recommends that policy makers should identify and formulate all-inclusive policy interventions that will have long-lasting positive impact on the rural households alongside the general economic policies of the country.