Impact of Non-governmental Organizations (NGOs) on Rural Poverty Alleviation in Southwestern Nigeria

The incidence, depth and severity of poverty of rural people and influencing rural poverty were investigated in the Southwestern Nigeria. Multi-stage stratified random sampling procedure was used to collect data from 200 clients and 200 non-clients of NGOs in the study area. Linear multiple regression was used to determine the magnitude of contribution of variables affecting poverty in Southwester Nigeria. Results of the Forster-Greer-Thorbecke indices showed that at annual poverty line of-N54, 776. 77, incidence (45.50%), depth (20.17%) and severity (10.98%) of poverty among the non-clients were higher than among the clients (29.50, 9.02 and 3.68% respectively). Relative poverty line among clients was above N141.60 ($1) per day while it was lower among the non-clients. The F-values indicated that the poverty model Itad good fit (p < 0.01) and the Chow's test-values established significant difference in poverty model between the clients and non-clients (p < 0.01). The study revealed that gender and poverty indicators were determinants of poverty among non-clients but not among clients. Socio-cultural spending was a positive and significant variable in the poverty models (p <0.01). It also showed that belonging to the clients' group alleviated poverty as well as enhanced savings of respondents. The study concludes that microfinance delivery efforts of the NGOs enhanced poverty alleviation among clients in the area.