Many rural households in Nigeria depend on forest extraction for daily sustenance yet, very little
is known about the impacts of forest income on the distribution of household total income, and
hence, on poverty in general. Using Gini and poverty decomposable techniques, the study finds
that forest income reduces both income inequality and poverty in rural Nigeria. Further,
Heckman’s 2-step estimation of the determinants of forest income indicates that the decision to
participate in forest extraction increases with more access to community forest areas; larger and
poorer households; membership in forest management committees, and decreases with higher
educational attainment and higher transfer income earnings. Likewise, forest income was found
to be positively and significantly related to male-headed households, poorer heads of household
and households that have more access to forest resources outside the community forestry
areas. Furthermore, simulations revealed that poverty and income inequality can be reduced in
rural Nigeria through policies that can; stimulate increased earnings from minor forest
resources, assist households to earn income from alternative sources such as agriculture and
commerce other than forest gathering.