ABSTRACT

The broad objective of this research was to assess the determinants of income distribution in rural households in Isuikwuato L. G. A. and to relate this to poverty issues in the L. G. A. The specific objectives were to: examine the socio-economic characteristics of poor households in the study area, to assess the incidence of poverty in the area, to examine the determinants of income an poverty level; and to make recommendations for policy actions. A multi-stage sampling approach was used to collect primary data from a random sample of 179 household heads with the help of well-framed questionnaire. Secondary data were gathered from textbooks, journals, World Bank Publications and other  relevant documents. Statistical and econometric tools were used in the analysis of data. From the result of this study. 60..34 percent of the rural households are poor. This implied that majority of the rural households are poor. The poverty. gap was derived as 0. 805. This implies that this level of poverty requires 80.5 percent of the mean household expenditure to overcome the income shortfall of the poor households. The level of poverty was significantly influenced by the age of the household heads, level of education of the household heads and farm sizes cultivated by each rural household. For successful poverty eradication programme in this area, government should seek means to improve the level of education of the rural people, as this will enhance their earning capacity. Government should also help to reduce the problem of land acquisition thereby enhancing large-scale production and improved household income.