Financial income and household status are common yardsticks for defining household living conditions and wellbeing. The study examined the livelihood conditions of selected peri-urban villages and rural communities in the Southwestern region of Nigeria. The triangulation of methods which included four hundred and seventy-two (472) household questionnaires survey provided a thematic understanding of the study area. This study termed many villages as “Few Excluded among the Commonly Excluded”. The study argues that rather than urbanisation positively improving households; financial situation within the peri-urban areas in the State; evidence from sampled communities reveals a negative income and poverty profile effect. Likewise, distance was a predictor of credit access among rural households. This study concludes that capital and income flight due to urban infrastructure demand is common among rural households.