Assessing the Effects of Rural Electrification on Household Welfare in Nigeria
Iyabo Olanrele
Abstract
A rural electrification (RE) strategy was adjudged as a means of extending electricity to unserved and underserved communities to bring about rural transformation and development. This study investigates the effect of Oyo State RE on household welfare indicators such as monthly income and per capita expenditure. Household survey data collected from the Nigerian Institute of Social And Economic Research (NISER) 2017 field survey were employed. Access to grid electricity increases household income by about 1.3 per cent. Although the coefficient was correctly signed, it was not significant. This outcome could be a result of constant electricity supply outages, which is strongly explained by the positive affirmation of 71 per cent of the respondents. Access to grid electricity increases household per capita monthly expenditure by about 6.4 per cent. Expenditure on electricity equally increases monthly per capita expenditure by about 4 per cent and is statistically significant at 1 per cent. Due to rapid decline in the cost of technology, mini-grid and off-grid systems have become viable options for extending electricity access that is more reliable, and hence has more economic benefits. JEL Classification: I31