Human Capital, Capabilities and Poverty in Rural Nigeria

Earlier studies in investigating the determinants of poverty in Nigeria have n0t explicitly considered the importance of capabilities as determinants of poverty despite the fact that capabilities dictate the state of deprivation and poverty among households. This paper examines the link between human capitol, capabilities, and poverty in the rural sector of the Nigerian economy. The study uses data from the 1996 General Household Survey (GHS) conducted by the Federal Office of Statistics, The analysis indicates that poverty is widespread in rural Nigeria and probit regression estimates emphasize the significant effects of human capital and capabilities in determining poverty status of rural households in Nigeria. These findings, therefore, suggest the need for a conscious effort at the policy level to redress poverty by increasing the human capital of individuals through provision of adequate education and other social sector services to individuals especially in rural areas.