Measuring the Economic Benefits of Forests in Relation to Households’ Welfare and Forest Dependence in South-western Nigeria

The study assesses the contributions of forest resources income on poverty among rural households in South-western Nigeria. A multi-stage random sampling approach was adopted while descriptive analysis and [Foster-Greer-Thorbecke (FGT 1984) poverty index] were used. Poverty index results showed that 68 percent of the rural households were living below the poverty line in the region. Disaggregated to state level, the highest proportion was found in Osun state (77 percent ), followed by Ogun state (70 percent ) and Oyo state with about 50 percent. The minimum cost required to bring those poor households to the poverty line (that is, to eliminate poverty) across states include: N4, 553, N9, 664 and N8918 in Oyo, Osun and Ogun states respectively. This indicates that poverty is more severe in Osun state followed by Oyo state but less severe in Ogun state. Also, forest income has tendency to stem the tide of poverty in the region. Therefore, Government and authority concerned should increase opportunities for entrepreneurship and employment in forestry while avoiding deforestation and forest degradation.