Abstract: Poverty situation in the rural sector of the economy is a response to the process of development brought about by institution to undertake specific rural development activities. So in reality, state decisions about rural development in Nigeria are made within the context of those institution. The aim of this study is to examine rural development institutions with a view to highlighting how they can effectively alleviate poverty in the rural areas. The study assesses public strategies and private initiatives designed officially to address poverty issues. This study therefore attempts an overview of the poverty trends in Nigeria rural areas. The effectiveness of the various government strategies towards checkmating the prevalence of poverty in the rural areas is also assessed. Finally, it is therefore recommended that the official rural development institutions are empowered for effective performance to alleviate poverty, promotion of private initiatives to enhance technology and all round rural development geared toward eradication of poverty and achieving the goal of sustainable rural development in Nigeria.