Abstract
Despite the southeast Nigeria's reputation for industrial ingenuity and entrepreneurial dynamism, electricity scarcity continues to erode productivity, limit job creation, and deepen household vulnerability. This study therefore investigates the direct impacts of energy insecurity on productivity, employment, and welfare, while examining how political and institutional dynamics shape and sustain these outcomes. Following the theoretical lens of Political Economy of Energy and NeoDependency frameworks, the study employs a qualitative case study design, combining in-depth interviews with fifty participants including household heads, small-scale entrepreneurs, and public officials across the five Southeastern states. Data were analyzed thematically using NVivo 14 to identify structural patterns of exclusion and political control within the energy sector. Our findings revealed that chronic under-electrification in the Southeast is less a technical lapse than a political artefact. Electricity scarcity functions as a governance mechanism through which access is rationed, dependency reinforced, and regional autonomy constrained. Institutional fragmentation, rent-seeking, and federal dominance over distribution perpetuate infrastructural neglect and economic stagnation. The study concluded that energy insecurity mirrors broader patterns of structural inequality and centralized control in Nigeria's federal arrangement. It recommends among others, a deliberate shift toward decentralized energy governance, community-managed renewables, and transparent regulation as pathways for restoring productivity, equity, and sustainable development in the Southeast.