Impact of the MICROVEG intervention on marketing efficiency of underutilized indigenous vegetables in Southwestern Nigeria

Abstract

This study examines whether the MICROVEG project, a Canadian-Nigerian initiative to promote the commercialization of underutilized indigenous vegetables (UIVs), improves marketing efficiency using a transaction cost lens. A multistage sample of 200 marketers in Oyo and Ogun States was surveyed, and data were analyzed using descriptive statistics and the Heckman two-stage model to correct for selection bias. Results show that UIV trade is dominated by women (64%) with an average of 18 years of experience. Participation in MICROVEG was significantly influenced by road quality (–1.32, p < 0.10), income (–0.64, p < 0.10), search costs (0.67, p < 0.05), and delayed payments (0.44, p < 0.05). Marketing efficiency was 170% among MICROVEG participants compared with 120% for non-participants, indicating clear efficiency gains. Search efforts significantly improved efficiency (β = 0.63, p < 0.05), implying that better information access can raise returns by as much as 63%. Conversely, larger household size and poor infrastructure lowered efficiency. The findings suggest that reducing transaction costs and strengthening market coordination can substantially enhance the participation and performance of UIV traders, who remain underrepresented in commercial markets despite their role in supplying nutrient-dense foods.