The 4th Nigerian Civilian Republic: Olusegun Obasanjo (1999-2007) – SS2 Nigerian History Lesson Note (Second Term)

The Fourth Nigerian Republic began on 29 May 1999, when Nigeria returned to civilian democratic government after many years of military rule. Chief Olusegun Obasanjo of the People’s Democratic Party (PDP), a former military ruler, was elected President and served two terms until 29 May 2007. His government focused on consolidating democracy, economic reforms, anti-corruption and foreign policy.

Behavioural objectives

By the end of the lesson, students should be able to:

• explain why Olusegun Obasanjo’s election in 1999 was significant
• state the key features of the 1999 Constitution
• describe the main reforms and challenges of Obasanjo’s first and second terms
• explain the third term agenda and how it ended
• list the achievements and criticisms of the Obasanjo administration

Who was Olusegun Obasanjo and why was his election significant?

Nigeria returned to civilian democratic government on 29 May 1999, after many years of military rule. This date was celebrated as Democracy Day until 2018. Since 2019, Democracy Day has been marked on 12 June.

Chief Olusegun Obasanjo, a former military ruler (1976-1979) who had become a civilian, was elected President. He was the candidate of the People’s Democratic Party (PDP). His election was significant because:

• He was a former military leader who had voluntarily handed over power to civilians in 1979
• He had been imprisoned by General Sani Abacha for allegedly planning a coup
• He was from the Yoruba ethnic group in the southwest, but had strong support from northern Nigeria
• He promised to fight corruption and improve Nigeria’s international image

What are the key features of the 1999 Constitution?

The Fourth Republic operates under the 1999 Constitution, which has these key features:

• A presidential system of government
• Federal structure with powers shared between national, state, and local governments
• Separation of powers between executive, legislative, and judicial branches
• Fundamental human rights protections
• 36 states plus the Federal Capital Territory (Abuja)

What happened in Obasanjo’s first term (1999-2003)?

Consolidating democracy

Obasanjo’s first major task was to ensure that democracy took root after years of military rule:

• He retired military officers who had held political positions
• He established civilian control over the armed forces
• He created space for a free press and civil society organisations
• He set up the Human Rights Violations Investigation Commission (Oputa Panel) to investigate past human rights abuses
• He allowed the National Assembly to function independently, sometimes leading to conflicts between the executive and legislative branches

Economic reforms

Nigeria’s economy was in poor shape when Obasanjo took over:

• He created the Economic and Financial Crimes Commission (EFCC) to fight corruption
• He established the Independent Corrupt Practices Commission (ICPC)
• He began privatising government-owned companies
• He worked to reduce Nigeria’s foreign debt
• He introduced the GSM mobile phone system, which transformed telecommunications in Nigeria
• He increased civil servant salaries to reduce corruption

Ethnic and religious tensions

Nigeria faced serious challenges from ethnic and religious conflicts:

• Sharia (Islamic law) was introduced in several northern states, causing tension
• Religious riots occurred in Kaduna and other cities
• Ethnic conflicts erupted in various parts of the country
• The Odi massacre occurred when soldiers killed civilians in a Niger Delta community in 1999
• The Zaki Biam massacre happened when soldiers killed civilians in Benue State in 2001

Obasanjo created the Niger Delta Development Commission (NDDC) to address the problems of the oil-producing regions.

Foreign policy

Obasanjo worked to improve Nigeria’s international standing:

• He travelled to many countries to rebuild Nigeria’s image
• He helped form the New Partnership for Africa’s Development (NEPAD)
• He supported the transformation of the Organisation of African Unity (OAU) into the African Union (AU)
• He resolved border disputes with neighbouring countries
• He helped end civil wars in Sierra Leone and Liberia
• Nigeria rejoined the Commonwealth of Nations

What happened in Obasanjo’s second term (2003-2007)?

2003 elections

Obasanjo was re-elected in 2003, defeating his main challenger, General Muhammadu Buhari of the All Nigeria People’s Party (ANPP). However, these elections were criticised for irregularities and fraud in some areas.

Economic reforms

Obasanjo’s second term saw more aggressive economic reforms:

• The banking sector was reformed, requiring banks to increase their capital base, which reduced the number of banks from 89 to 25 stronger banks
• Nigeria secured debt relief from the Paris Club in 2005, reducing the country’s foreign debt from $30 billion to $12 billion
• Oil production increased, bringing more revenue
• The National Economic Empowerment and Development Strategy (NEEDS) was launched
• The pension system was reformed with a contributory scheme
• The Excess Crude Account was created to save extra oil revenue

Anti-corruption campaign

The fight against corruption intensified:

• Several high-profile officials were investigated, including governors and ministers
• The EFCC, led by Nuhu Ribadu, recovered billions of naira in stolen funds
• Nigeria improved its ranking on international corruption indexes
• Public officials were required to declare their assets

However, critics said the anti-corruption fight was sometimes used against political opponents.

Power sector reforms

Nigeria had serious electricity problems, with frequent blackouts:

• Obasanjo unbundled the National Electric Power Authority (NEPA) into separate companies
• He invested billions of dollars to improve power generation
• Despite these efforts, power supply remained unreliable

Infrastructure development

Obasanjo’s government invested in infrastructure:

• The Abuja-Kaduna highway was improved
• Work began on the Lagos-Kano railway modernisation
• New airports were built or upgraded
• The Abuja city centre was developed

The third term agenda

Towards the end of his second term, there were attempts to change the constitution to allow Obasanjo to run for a third term:

• The National Assembly debated a constitutional amendment
• Civil society groups and many Nigerians opposed the idea
• In May 2006, the Senate rejected the amendment, ending the third term agenda
• Obasanjo accepted this decision and prepared to hand over power

2007 elections and transition

In 2007, elections were held to choose Obasanjo’s successor:

• Umaru Musa Yar’Adua of the PDP was elected president
• The elections were widely criticised as flawed by both Nigerian and international observers
• Despite the problems, Obasanjo handed over power on 29 May 2007
• This marked the first civilian-to-civilian transfer of power in Nigeria’s history

What were the major achievements of the Obasanjo administration?

Political achievements

• Consolidated democratic rule after years of military dictatorship
• Strengthened civilian institutions
• Completed two terms and handed over to another elected president
• Expanded political space for opposition and civil society
• Created new states and local governments

Economic achievements

• Reduced external debt through Paris Club debt relief
• Grew the economy at an average of 6% annually
• Reformed the banking sector
• Liberalised the telecommunications sector
• Increased foreign investment
• Created the Economic and Financial Crimes Commission (EFCC)
• Privatised many government enterprises
• Increased foreign reserves from $3.7 billion in 1999 to $43 billion in 2007

Social achievements

• Introduced the Universal Basic Education programme
• Created the National Health Insurance Scheme
• Expanded university education with more federal universities
• Increased minimum wage for workers
• Addressed HIV/AIDS through prevention and treatment programmes
• Created the Niger Delta Development Commission

Foreign policy achievements

• Restored Nigeria’s international reputation
• Played key roles in forming the African Union and NEPAD
• Led peacekeeping missions in West Africa
• Mediated in conflicts across Africa
• Improved relations with Western countries

What were the challenges and criticisms of the Obasanjo administration?

Political challenges

• Political violence remained common
• Elections were flawed and often manipulated
• The third term agenda damaged Obasanjo’s democratic credentials
• Opposition parties were weak and fragmented
• The legislature and executive often clashed

Economic challenges

• Poverty remained widespread despite economic growth
• Unemployment stayed high, especially among young people
• Infrastructure remained poor, especially electricity
• The economy remained dependent on oil
• Inequality between rich and poor increased
• Privatisation sometimes benefited political allies

Security challenges

• Religious and ethnic conflicts continued
• The Niger Delta militancy grew, with oil facilities attacked
• Police brutality remained common
• The Boko Haram sect began during this period, though it was not yet a major threat
• Civilian massacres by the military in Odi and Zaki Biam

Corruption

• Despite anti-corruption efforts, corruption remained widespread
• Some saw the anti-corruption fight as selective, targeting opponents
• Some corrupt officials were never prosecuted

What was Obasanjo’s legacy?

Obasanjo’s eight-year presidency had a lasting impact on Nigeria:

1. Democratic stability: He established civilian rule that has continued (though with problems) to the present day.
2. Economic foundation: His reforms, especially in banking, telecommunications, and debt management, set the stage for later economic growth.
3. International standing: He restored Nigeria’s position as an important African leader.
4. Anti-corruption institutions: He created institutions like the EFCC that continue to fight corruption.
5. Political precedent: By accepting the rejection of the third term agenda and handing over power, he set an important democratic precedent.

The Fourth Republic that began with Obasanjo has now become Nigeria’s longest continuous democratic period since independence. While it has faced many challenges and is far from perfect, it represents an important break from the cycle of military coups that characterised earlier periods of Nigerian history.

Obasanjo himself remains a controversial figure in Nigerian politics. Some see him as the father of modern Nigerian democracy who made difficult but necessary reforms. Others criticise him for his sometimes authoritarian style, the flawed elections under his watch, and the unfulfilled promises of his administration. Regardless of these differing views, his presidency was an important period in Nigeria’s development as a democratic nation.

Evaluation

1. Give three reasons why Obasanjo’s election in 1999 was significant.
2. State four key features of the 1999 Constitution.
3. Name three institutions or programmes that Obasanjo created, and state the purpose of each.
4. Explain what the third term agenda was and how it ended.
5. State three challenges that Nigeria faced under the Obasanjo administration.

Assignment

Write a short essay on the achievements and criticisms of the Obasanjo administration (1999-2007). Include at least four achievements and four criticisms, and say whether you think his legacy was mostly positive or negative.