This study investigates the effect of economic recession on household income in
Katsina-Ala Local Government Area, Benue State. The study used questionnaire
administered to seven hundred and sixty-eight (765) respondents in twelve council
wards. The study used a cross-sectional survey design that involved different groups of people
with diverse interests. The severity index shows that household income before the recession
was higher than during the economic recession. The mean income level of residents was
higher before the recession than during the recession. Before the recession, the poverty
headcount index was 26% for the core poor, 32% for the moderately poor, and 42% for the
non-poor. During the recession, the core poverty index was 78%, moderately poor was 18%,
and non-poor was 04%. The result indicates that many people went into poverty during the
recession. The poverty gap index shows that 28% were core poor before the economic
recession, and 32 % were moderately poor. In contrast, during the recession, the poverty gap
increased to 80% for the core poor and 15% for the moderately poor meaning that people who
were moderately poor before the recession eventually became poor during the recession. This
study recommends that the federal, state, and local governments take proactive measures by
increasing the volume of economic activities and embarking on extra-budgetary expenditures
that boost the domestic economy and increase economic growth.
Economics,

Key words: Economic Recession, Livelihood, Katsina-Ala, Local Government, Benue State