The global food price crisis in 2007-08 had negative implications for food security in Nigeria. Prices of almost all food commodities were higher in 2008 as compared to 2007. Between May 2007 and May 2008, price of major Nigerian staples such as rice increased by 107 percent and garri by about 60 percent. The rise in price has driven the general inflation so high that it rose from 5.4 percent in late 2007 to 9.7 percent in mid-2008. Thus, purchasing power and level of nutrition of the people has been drastically reduced (NISER 2008).

The share of income spent on purchasing food has increased for both rural and urban households. In urban areas, the share of food expenditure increased from 45 percent in 2007 to approximately 80 percent in 2008 in the Northeast. In rural regions, the percentage of income spent on food rose from 44 percent to about 72 percent in the Southeast. As a result, urban and rural households were forced to borrow money or reduce their savings. Estimates show that in 2008, urban households borrowed or de-saved M 2, 113 per capita per month, while rural households borrowed N 2,724 to fulfill their food needs. Other coping mechanisms include diversifying income sources, substituting more expensive food commodities with less expensive ones, and reducing the frequency of meals (NISER 2008).

The Government took several steps to mitigate the negative consequences of high food prices. The Government procured 650,000 tonnes of fertilizer to ensure good harvest in the following planting seasons. The Government also released 65,000 metric tonnes of grains, and also guaranteed minimum price system for purchasing excess produce (FAO/GIEWS 2008). As a result of these actions, food security in the country has begun to show signs of improvement.