Over the years, efforts have been made to improve the living conditions of the rural poor with the government embarking on different projects some of which are questioned even by the intended beneficiaries. The Federal Government of Nigeria in 2009 embarked on the dredging of the Lower Niger River some 573 kilometres upstream from Warri in Delta state to Baro in Niger State, Nigeria with the intension of promoting economic activities in the country. Considering the huge amount of money invested in the project, this study was carried out to examine the impact of the project on the socioeconomics of arable farming households in the study area. A simple random sampling technique was used to select 60 respondents for the study after which a well-structured questionnaire was used to collect data from them. Descriptive statistics and the Sustainable Livelihood Framework were the major analytical tools used for the study. Results of the study showed that on the overall, the project has a positive impact on the livelihood of the respondents though not without some negative effect. The study therefore recommends that in the future adequate compensation should be paid to the Project Affected People who had their assets destroyed and their livelihood negatively affected as a result of the project. Also, sufficient and proper assessment should be done before embarking on the execution of the project such that enough provision is made to cushion its negative effect.