<p>Despite the efforts to reduce poverty in Nigeria, there is evidence that many people are living below the poverty line. Importance is attached to community-based organizations as a solution to social interaction for poverty reduction. This study assessed the determinants of participation in community-based organizations and its impact on poverty eradication. A multi-stage sampling procedure was employed to obtain data from 300 respondents. Data were analyzed using probit regression and the two-stage probit regression models. The study revealed that most (70%) respondents participated in community-based organizations. The poverty line was estimated to be N9377.44. The poverty prevalence (<i>P</i>₀), poverty depth (<i>P</i>₁), and poverty severity (<i>P</i>₂) were 0.5810, 0.1583, and 0.0503, respectively. The probit regression model revealed that farm size, formal education, age, gender, farm income, household size, access to credit, and types of community-based organizations significantly affect the participation of rural households in community-based organizations. The two-stage probit regression model shows that in addition to participation in community-based organizations, farm size, formal education, farming experience, gender, number of adults in the households, non-farm income, household size, and access to credit significantly affect the poverty status of the rural households. The study concluded that participation in community-based organizations remarkably reduces rural households’ poverty status. The study recommended that the government should encourage non-participants to participate in community-based organizations and introduce policies that facilitate an increase in the level of education and access to credit facilities to reduce poverty among rural households.</p>