Recently, the world has been confronted with unprecedented global pandemic which has resulted in many deaths, fears, shocks and effects on people’s livelihood. In Nigeria, the measures taken to curtail the spread of the Covid-19 during the lockdown affected means of livelihoods undertaken by people. This study measured the effects of Covid19 pandemic on the livelihood of farmers and business owners of Iwo inhabitants in Osun State. The study also examined the challenges posed by the pandemic and assessed the effects of government's strategies implemented for the disease control on the livelihoods of the farmers and business owners. A total number of 200 well-structured questionnaires were administered to the respondents in the study area using snowball sampling technique. The questionnaires were all returned amounting to 100% response rate. Data was analysed using descriptive method with the aid of SPSS. Findings revealed that Covid-19 negatively affected the lives of people, ranging from suspension of businesses and other daily activities that requires physical contacts, travel ban effects on business, inflation in price of goods and services, suspension of farming activities, increased cost of labour and agrochemicals amongst others. It was observed that diversification into other business interest is among the reasons why some of the respondents survived during the Pandemic. The study recommends that measures taken to curtail the effects of Covid19 through vaccination be adhered to for prevention of cases that may warrant further shutdown of activities which may hamper livelihoods engagement.