Abstract
This study examines the contribution of social capital to food consumption expenditure as a measure of rural poverty in Oyo state, Nigeria. Specifically, it examines the dimensions of social capital, determines the poverty status of farming households, and analyses how social capital influences consumption expenditure to indicate the level of poverty reduction among the respondents. Primary data was collected using a structured questionnaire. The random sampling approach was used to sample 150 rural farming households. Descriptive statistics, the Foster, Greer, and Thorbecke (FGT) poverty index, and Tobit regression analysis were used to analyze the data. Evidence of social capital was provided through individual participation in different associations, groups, and cooperatives. The average per capita monthly expenditure was estimated at ₦35,226.67 ($37.48). Poverty is more prevalent among females and relatively lower among people between 31 and 40 years of age. People with higher per capita expenditure have relatively lower rates of poverty. Household size, age, and participation in social groups have a statistically significant effect on poverty reduction. Consequently, investment in social capital can smooth the consumption of the poor, thereby reducing poverty.