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This research was carried out in Iwo Local Government, Osun State, Nigeria with the aim of assessing Iwo's poverty situation and recommending ways by which its poverty can be reduced. Primary source was used to collect data through the use of questionnaires and interviews. The questionnaires were collated and coded. Data was electronically processed with the Statistical Package for Social Sciences (SPSS) using the Ordinary Least Squares (OLS) method. The analysis of the results, revealed that poverty in Iwo is predicated on knowlege base of the critical variables. This was reflected mostly in the parameters (0.468, 0.158, -0.077 and 0.0101) for education, housing, feeding and healthcare respectively.