Determinants of Participation in Community-Based Organizations and Its Impact on Poverty Eradication Among Rural Households in Osun State

Abstract

Abstract Despite the efforts to reduce poverty in Nigeria, there is evidence that many people are living below the poverty line. Importance is attached to community-based organizations as a solution to social interaction for poverty reduction. This study assessed the determinants of participation in community-based organizations and its impact on poverty eradication. A multi-stage sampling procedure was employed to obtain data from 300 respondents. Data were analyzed using probit regression and the two-stage probit regression models. The study revealed that most (70%) respondents participated in community-based organizations. The poverty line was estimated to be N9377.44. The poverty prevalence ( P 0 ), poverty depth ( P 1 ), and poverty severity ( P 2 ) were 0.5810, 0.1583, and 0.0503, respectively. The probit regression model revealed that farm size, formal education, age, gender, farm income, household size, access to credit, and types of community-based organizations significantly affect the participation of rural households in community-based organizations. The two-stage probit regression model shows that in addition to participation in community-based organizations, farm size, formal education, farming experience, gender, number of adults in the households, non-farm income, household size, and access to credit significantly affect the poverty status of the rural households. The study concluded that participation in community-based organizations remarkably reduces rural households’ poverty status. The study recommended that the government should encourage non-participants to participate in community-based organizations and introduce policies that facilitate an increase in the level of education and access to credit facilities to reduce poverty among rural households.