Monetary Poverty versus Multidimensional Poverty: An Empirical Reflection of Farming Household in Rural Area of Oyo state, Nigeria

This study examined empirically the relationship that exists between one-dimensional (monetary) poverty and multidimensional poverty of the farming households in rural area of Oyo State, Nigeria. Multistage sampling procedure was employed for the selection of 317 respondents in Ijaye, Ilora and Ido farm settlements respectively. Four dimensions were considered: education, consumption, housing/standard of living dimensions and the multidimensional poverty. Consumption equivalent of $1.25 per capita per day was used as poverty line for the monetary poverty. Concerning the relationship between income poverty and multidimensional poverty, income still play a major role in poverty determination, though multidimensional examination of poverty revealed better, deprivation of human basic capability, covering both one-dimensional and multidimensional poverty. The statistical revelation indicated that monetary headcount is about 87%, while multidimensional headcount is 82% respectively. The probit estimates results indicated that an increase in income alone in isolation of other deprivation variables cannot significantly reduce individual poverty.