The study examines some of the factors which determine the type of non-agricultural
activities in rural Nigeria an individual engages in. It is argued that diversification from
subsistence farming and support for rural on-farm employment opportunities could be
poverty-reducing. It has been noticed that an increase in foreign remittances reduces the
incidence, depth and severity of poverty in developing countries. This study considers
remittances as a source of incomewhich could possibly reduce poverty in the rural sector of the economy.We focus on the non-farmsector because of its potential for development and poverty alleviation in Nigeria.