The effect of public investment in renewable energy on poverty reduction in Nigeria: Evidence from rural electrification projects in Kaduna State (2000–2020).
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Background of the study
Public investment in renewable energy, particularly through rural electrification projects, has emerged as a key strategy for poverty reduction in Nigeria. In Kaduna State, investments made between 2000 and 2020 have aimed to expand access to sustainable and affordable energy sources in rural areas. These projects are intended to stimulate local economic activities, improve education and healthcare outcomes, and ultimately uplift living standards by reducing energy poverty (Oluwaseun, 2023). Renewable energy initiatives—such as solar and mini-hydropower projects—offer the dual benefits of environmental sustainability and socio-economic development. Empirical evidence suggests that improved energy access can lead to increased income opportunities, better agricultural productivity, and enhanced community services (Chinwe, 2024). However, challenges such as insufficient funding, technical capacity limitations, and maintenance issues have hindered the effectiveness of these projects (Ibrahim, 2025). This study critically examines the impact of public investment in renewable energy on poverty reduction, analyzing the mechanisms through which rural electrification projects contribute to socio-economic improvement in Kaduna State.
Statement of the problem
Despite significant public investments in renewable energy, many rural communities in Kaduna State still experience energy poverty, which limits economic development and perpetuates poverty cycles. Issues such as inadequate maintenance, insufficient capacity-building, and inconsistent project implementation have reduced the effectiveness of rural electrification initiatives (Oluwaseun, 2023; Chinwe, 2024). This study seeks to identify the key challenges and evaluate the actual impact of renewable energy investments on poverty reduction, aiming to offer recommendations for enhancing the effectiveness of these initiatives.
Objectives of the study:
- To evaluate the impact of renewable energy investments on poverty reduction.
- To identify challenges in the implementation of rural electrification projects.
- To recommend strategies for improving project effectiveness.
Research questions:
- How does public investment in renewable energy affect poverty reduction?
- What challenges hinder the success of rural electrification projects?
- What measures can enhance the impact of these projects?
Research Hypotheses:
- Renewable energy investments reduce poverty by increasing income opportunities.
- Implementation challenges diminish the potential benefits of rural electrification.
- Enhanced technical and managerial capacity improves project outcomes.
Significance of the study
This study is significant as it explores the role of public renewable energy investments in reducing poverty in rural Kaduna State. By examining the link between energy access and socio-economic development, the findings will provide policymakers with actionable strategies to improve project implementation and amplify the poverty-reduction impact. The research ultimately contributes to sustainable development and better living standards in rural areas (Ibrahim, 2025).
Scope and limitations of the study:
This study is limited to examining renewable energy investments and their impact on poverty reduction in Kaduna State, focusing on rural electrification projects.
Definitions of terms:
- Renewable Energy: Energy derived from naturally replenishing sources such as solar and wind.
- Poverty Reduction: Measures aimed at improving living standards and reducing economic deprivation.
- Rural Electrification: The process of extending electricity access to rural communities.
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