To show whether fuelwood use could contribute to household poverty in Nigeria, the paper has used the discounted cash flow micro-economic assessment to evaluate the annual worth cost of harnessing fuelwood for cooking and water heating in Nigerian households, for an average household size of five persons per day. Findings indicate that 9786 Naira is being expended on cooking and water heating activities at the household level in Nigeria which is much greater than the mean national household income of about 5150 Naira a year. The study has shown that households using fuelwood are made poorer and left with no savings.