This study analyzed the efficiency of groundnut farmer's in the adoption of IAR developed groundnut varieties for poverty alleviation in north western Nigeria. Primary data were obtained through the use of well-structured questionnaires from a sample size of 112 comprising of 56 adopters and 56 non-adopters of IAR groundnut varieties. The data were analyzed using descriptive statistics, logit regression, and Foster-Greer-Thorbecke's (FGT) Weighted Poverty Index. That the average age of adopters was approximately 47 years. The estimated coefficients of parameters of the production function such as seed and agrochemical were significant and had effect on efficiency. The mean technical efficiency index for adopters was 0.62 with a mean allocative efficiency index of 0.96 and mean economic efficiency index of 0.59.The mean technical efficiency index for non-adopters was0.56 with a mean allocative efficiency index of 0.74and mean economic efficiency index of 0.41. From the estimates of FGT weighted class of poverty indices, using the poverty line of N45,964.88, the poverty incidence on adopters of IAR groundnut varieties was 29% while that of the non-adopters was 51%. The poverty gap index for the adopters of IAR groundnut varieties who are poor was 0.31 while that of the non-adopters was 0.34. Also, the poverty severity index among those who adopted IAR groundnut varieties was 0.09 while those who did not adopt the varieties was 0.11.The logit regression analysis shows that there is the high likelihood that poverty level will be reduced as adopters of IAR groundnut varieties increase their level of efficiency. The constraints faced by the farmers adopting IAR developed groundnut varieties identified includes, the problem of pest and disease, inadequacy of capital and credit facilities.The evidence from this study suggests that IAR developed groundnut varieties contributed to poverty reduction in the study area, and increases the efficiency of the adopters of the improved varieties which further helps alleviate poverty in the study area. It is recommended that stakeholders should encourage groundnut farmers to adopt IAR developed groundnut.