Abstract: Climate change poses a threat to natural resources and increases the vulnerability of rural livelihoods. This has raised an urgent need to focus on efficient and sustainable utilization of natural resources. This study examines the relationship between resource efficiency and productivity in rural Nigeria. Using General Household Survey data, the study employed Data Envelope Analysis, multiple regressions, propensity score matching model and descriptive analysis to examine resource efficiency in selected agro-firms. The study found that 47.63% of the firms were efficient. Furthermore, land-area and capital were significant determinants of the efficiency of green agro-based firms and efficiency significantly and positively influenced labour and capital productivity of rural agriculture. The study recommends increased sensitization of farmers and agricultural entrepreneurs to increase their awareness of existing opportunities for increased resource efficiency and availability of advanced technology, hybrid seeds and innovative ways that are predominant in the agricultural sector, in order to improve efficiency.

JEL classification: D2, Q5, Q1, L2