This paper analyzes the poverty status of Fadama II and non-Fadama II beneficiaries in rural Oyo State, Southwestern Nigeria. The sample survey data were collected from 450 rural households comprising of purposively selected 150 beneficiaries of Fadama II, 150 non-beneficiaries within Fadama II local government and 150 non-beneficiaries outside the local government. Propensity Score Matching technique was used to select comparable observations which reduced the sample size to 412 observations. The prevalence of poverty was found to be highest among the non-beneficiaries within fadama II LGA (73%), followed by non-beneficiaries outside fadama (69%) and Fadama II beneficiaries (38%). Key factors that influence poverty were household size, educational status, credit utilization and being a Fadama II beneficiary. To reduce poverty, this study suggests that the project should be extended to the non-benefiting communities since findings have shown that being a beneficiary reduces the probability of being poor. There is also a need to promote birth control programme among respondents since findings have shown that higher household size increases the probability of being poor, while acquiring formal education should also be promoted among respondents.


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