Effect of Multidimensional Energy Poverty on the Productivity of Farming Households in Nigeria

ABSTRACT Energy poverty significantly constrains economic development, especially in rural Nigeria, where only 30% of households have access to electricity. This study investigates energy poverty's effect on agricultural productivity using 2018/2019 General Household Survey (GHS) panel data. Analysis reveals 49.4% of farming households exhibit low productivity, with only 15% accessing credit. Male‐headed households dominate among the multidimensionally poor (87%) and low‐productivity groups (84%). Age and education influence productivity; 47.5% of low‐productivity households are led by individuals aged 50 or older, while 70% of high‐productivity households have literate heads. Rural areas are disproportionately affected, hosting 92% of multidimensionally poor households. Energy poverty reduces total factor productivity (TFP) by 0.572 units, limiting technology adoption like irrigation and storage. Gender disparities persist, favoring male farmers in TFP. The study underscores the need for rural electrification, credit access, and targeted policies to boost productivity and support sustainable rural development.