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Effects of COVID-19 Pandemic on Productivity of Crop-Based Agribusinesses in Imo State, Nigeria

Rebecca Ijeoma AkaghaPeter, Stephen Umamefula Osuji Onyeagocha, Fidelis, Okwudili Nwosu, I

Abstract

This study analyzed the effects of the COVID-19 pandemic on the productivity of crop-based agribusinesses in Imo State, Nigeria. It assessed productivity levels before and during the lockdown and estimated the pandemic’s impact using the Total Factor Productivity (TFP) and Endogenous Switching Regression (ESR) models. Primary data were collected from 120 respondents across twenty-two communities within the three agricultural zones of Owerri, Okigwe, and Orlu. Findings reveal a significant decline in revenue and profitability during the lockdown, accompanied by increased production costs and reduced TFP. These declines were primarily driven by labor shortages, supply chain disruptions, input scarcity, and transportation barriers. Gender, education, sales value, access to inputs, mobility frequency, number of restrictions, and ease of transportation significantly influenced productivity among both compliant and non-compliant groups. Male and better-educated operators demonstrated higher productivity, reflecting greater access to resources and adaptive capacity. Conversely, high-output operators with limited mobility experienced sharper productivity losses. The Average Treatment Effect on the Treated (ATT) confirms that lockdown restrictions significantly reduced productivity among compliant operators, whereas the Average Treatment Effect on the Untreated (ATU) indicates that non-compliant operators maintained relatively higher output levels. The study concludes that COVID-19 severely disrupted crop-based agribusiness productivity, exposing the sector’s vulnerability to external shocks. It recommends policies ensuring uninterrupted access to inputs and labor, promotion of digital tools for logistics and marketing, financial and technical support for smallholders, and the formal recognition of agribusinesses as essential services to sustain productivity during future crises.

Keywords

COVID-19 pandemiccrop-based agribusinessesproductivityImo State

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