Effects of Domestic Remittances on Poverty Status of Rural Households in Ogun State, Nigeria

Abstract

This study assessed the types and channels of domestic remittances received by rural households as well as the dimensions of poverty and its effect on domestic remittance among rural households in Ogun State. A Structured questionnaire was used to obtain primary data from 223 respondents drawn through multi-stage sampling technique from the study area. Data were analysed using descriptive statistics, Multidimensional Poverty Index and Binary Logit regression. Findings revealed that 57.4% of the household heads were male, 58% were married, 44.3% had primary education and 62.4% received domestic remittances with a mean age and household size of 55 years and 4 persons respectively. Half (50.4%) of the respondents received cash remittances and 62% received remittances through personal delivery. Result showed Poverty Index bench mark of 0.333, 59.3% of the rural households were poor with a poverty intensity of 0.658 Age squared (p<0.01), remittance income (p<0.10), and farm size (p<0.10) increased households’ likelihood of escaping poverty while sex (p<0.01) and household size (p<0.05) increased the likelihood of poverty exit. In conclusion, domestic remittances reduced poverty of rural households in the study area. The study therefore recommends that continuous flow of remittances into rural households should be enhanced in order to facilitate improved standard of living.