Military triumvirate Aware of the danger of alienating northern Nigerians, Obasanjo brought General
Shehu Yar'Adua as his replacement and second-in-command as
Chief of Staff, Supreme Headquarters completing the military triumvirate, with Obasanjo as head of state and General
Theophilus Danjuma as
Chief of Army Staff, the three went on to re-establish control over the
military regime. Obasanjo encouraged debate and consensus among the Supreme Military Council. Many wondered why Obasanjo – as a Yoruba and a Christian – had appointed Yar'Adua, a member of the northern
aristocracy, as his second-in-command, rather than a fellow Yoruba Christian. Obasanjo emphasised national concerns over those of the regions; he encouraged both children and adults to recite the new national pledge and the national anthem. Interested in getting a broader range of perspectives, each Saturday he held an informal seminar on a topical issue to which people other than politicians and civil servants were invited. Among those whose advice he sought were Islamic scholars and traditional chiefs.
Economic policy in the White House in 1977|325x325px|left By the mid-1970s, Nigeria had an
overheated economy with a 34% inflation rate. To deal with Nigeria's economic problems, Obasanjo pursued
austerity measures to reduce public expenditure. In his 1976 budget, Obasanjo proposed to reduce
government expenditure by a sixth, curtailing prestige projects while spending more on education, health, housing, and agriculture. He also set up an anti-inflation task force, and within a year of Obasanjo taking office, inflation had fallen to 30%. Obasanjo was generally adverse to borrowing money, but with the support of the
World Bank and
International Monetary Fund Nigeria took out a $1 billion loan from a syndicate of banks. Leftist critics argued that doing so left the country subservient to capitalism. In the subsequent two years of Obasanjo's government, Nigeria borrowed a further $4,983 million. Nigeria was undergoing nearly 3% annual population growth during the 1970s, something which would double the country's population in just over 25 years. Obasanjo later noted that he was unaware of this at the time, with his government having no policy on
population control. Nigeria's population growth contributed to rapid urbanisation and an urban housing shortage. To deal with this, Obasanjo's 1976 budget outlined plans for the construction of 200,000 new housing units by 1980, although ultimately only 28,500 were built. In 1976, Obasanjo's government also announced rent and price controls. To counteract the disruption of labour strikes, in 1976 Obasanjo's government introduced legislation that defined most major industries as essential services, banned strikes within them, and authorised the detention of disruptive union leaders. In 1978 it merged 42 unions into the single
Nigerian Labour Congress. Obasanjo continued with three major irrigation schemes in northern Nigeria that were first announced under Murtala: the
Kano River Project, the
Bakalori Scheme, and the
South Chad Irrigation Project. His government also continued the Agricultural Development Projects launched in
Funtua,
Gusau, and
Gombe. Some reforestation projects were also initiated to stall the encroachment of the
Sahara in the north. To meet the country's growing demand for electricity, Obasanjo oversaw the launch of two new hydroelectric projects and a thermal plant. The oil industry remained an important part of Nigeria's economy and under Obasanjo the Ministry of Petroleum Resources was merged with the Nigerian National Oil Corporation to form the
Nigerian National Petroleum Corporation (NNPC). Obasanjo also supported the creation of a liquefaction plant at
Bonny, which was 62% financed by the NNPC; the project was abandoned by his successor amid spiralling cost increases. Obasanjo also continued the planning of the
Ajaokuta integrated steel mill, an inherited project that many critics in the civil service argued was unviable. In the mid-1970s, Nigeria also faced declining agricultural production, a process caused by successive governments finding it cheaper to import food than grow it domestically. In May 1976, Obasanjo launched
Operation Feed the Nation, a project to revitalise small-scale farming and which involved students being paid to farm during the holidays. The project also involved abolishing duties on livestock feed and farm implements, subsidizing the use of fertilisers, and easing agricultural credit. In March 1978, Obasanjo issued the Land Use Decree which gave the state propriety rights over all land. This was designed to stop land hoarding and land speculation, and brought praise from the Nigerian left although was disliked by many land-owning families. Obasanjo saw it as one of his government's main achievements. Obasanjo supported the restraints on
foreign investment of
Gowon and continued these policies.
Nationalization economic policies in key sectors eroded private investment, leading to industrial stagnation, though proponents credit Obasanjo with stabilizing fiscal discipline relative to predecessors.
Domestic policies He (Obasanjo) continued the push for universal primary education across Nigeria, a policy inherited from Gowon. He introduced the Primary Education Act in the year 1976; between 1975–76 and 1979–80, enrolment in free but voluntary primary schooling grew from 6 million to 12.5 million, although there was a shortage of teachers and materials to cope with the demand. In the 1977–78 school year, Obasanjo introduced free secondary education in technical subjects, something extended to all secondary schooling in 1979–80. Concomitantly, Nigeria cut back on university funding; in 1978 it ceased issuing student loans and trebled university food and accommodation charges. Student protests erupted in several cities, resulting in fatal shootings in Lagos and
Zaria. In response to the unrest, Obasanjo closed several universities, banned political activity on campus, and proscribed the
National Union of Nigerian Students. The severity of these measures was perhaps due to suspicions that the student unrest was linked to a planned military coup that was uncovered in February 1978. Obasanjo was frustrated at the protesting student's behaviour, arguing that it reflected a turn away from traditional values such as respect for elders. As a consequence of Nigeria's state-directed development, the country saw a rapid growth in the
public sector. Evidence emerged of extensive corruption in the country's government, and while accusations were often made against Obasanjo himself, no hard evidence was produced. To hinder the image of corruption in the government, Obasanjo's administration banned the use of
Mercedes cars as government transport and instead introduced more modest
Peugeot 504s. The import of
champagne was also banned. Pushing for cut-backs in the military, Obasanjo's government saw 12,000 soldiers demobilised over the course of 1976 and 1977. These troops went through new rehabilitation centres to assist them in adjusting to civilian life. Obasanjo was also accused of being responsible for political repression. In one famous instance, the compound of the Nigerian musician and political activist
Fela Kuti,
Kalakuta Republic, was raided and burned to the ground after a member of his entourage was involved in an altercation with military personnel. Fela and his family were beaten and raped and his aged mother, the political activist and founding mother Chief
Funmilayo Ransome Kuti, was thrown from a window. This resulted in serious injuries, and eventually led to her death. Fela subsequently carried a coffin to the then presidential residence at
Dodan Barracks in Lagos as a protest against the government's political repression.
Foreign policy with Obasanjo on the former's state visit to Nigeria in 1978 Obasanjo was eager to establish Nigeria as a prominent leader in Africa and under his tenure its influence in the continent increased. He revived Gowon's plan to hold the second
World Black and African Festival of Arts and Culture in Nigeria; it took place in Lagos in February 1977, although domestic critics argued that it was too expensive. Obasanjo gave low priority to the
Economic Community of West African States (ECOWAS) and angered many of its Francophone members after insisting that, as the largest financial contributor to the organisation, Nigeria should host the organisation's headquarters in Lagos. Relations with nearby Ghana also declined; in 1979, Nigeria cut off oil supplies to the country to protest the execution of political opponents by
Jerry Rawlings' new military junta. Under Obasanjo, Nigeria loosened its longstanding ties with the United Kingdom and aligned more closely with the United States. Obasanjo was favourable to the administration of U.S. president
Jimmy Carter, who was elected in 1976, because of Carter's commitment to ensuring majority rule across southern Africa. Carter's ambassador to Nigeria,
Andrew Young, formed a close personal friendship with Obasanjo, while Carter visited Nigeria in 1978. However, the decision to shift allegiances was made for pragmatic rather than ideological reasons; the discovery of oil in the
North Sea meant that the UK had become a competitor rather than a customer of Nigerian oil. Obasanjo's government was also angry that the UK refused to extradite Gowon and suspected that the British government might have been involved in the coup against Murtala. For these reasons, in 1976 it considered suspending diplomatic relations with the UK, but ultimately did not. Obasanjo nevertheless refused to visit the UK and discouraged his officials from doing so. Relations were further damaged when
Margaret Thatcher became British prime minister
in 1979, initiating a warmer British approach to the white minority administrations of
Rhodesia and
South Africa. In response, Nigeria seized a British tanker that was believed to be transporting Nigerian oil to South Africa, banned British firms from competing for Nigerian contracts, and nationalised
BP's Nigerian operations. Obasanjo was also eager to hasten the end of white minority rule in southern Africa; according to Iliffe, this became "the centrepiece of his foreign policy". Nigeria gave grants to those fighting white minority rule in the region, allowed these groups to open offices in Lagos, and offered sanctuary to various refugees fleeing the governments of southern Africa. Taking a hard line against the
apartheid regime in South Africa, Obasanjo announced that Nigeria would not take part in the
1976 Summer Olympics because New Zealand, which was competing, had
sporting ties with South Africa, a country that was banned from competing due to apartheid. In 1977, Obasanjo barred any contractors with South African links from operating in Nigeria; the main companies that were hit were British Petroleum and
Barclays Bank. That same year, Nigeria hosted the
United Nations Conference for Action Against Apartheid in Lagos, while Obasanjo visited the U.S. in October where he urged the country to stop selling arms to South Africa. While in the country he addressed the
United Nations General Assembly and two weeks later Nigeria received a seat on the
United Nations Security Council. as British Prime Minister contributed to deteriorating UK-Nigerian relations; Obasanjo deemed her too sympathetic to white minority governments in southern Africa|295x295px Opposition to white minority rule in Rhodesia had sparked the
Rhodesian Bush War and Obasanjo's government maintained that armed struggle was the only option for overthrowing Rhodesia's government. He encouraged unity among the various anti-government factions there, urging
Robert Mugabe, the head of
ZANU, to accept the leadership of his rival,
Joshua Nkomo of
ZAPU. In 1977, the UK and US drew up proposals for a transition to majority rule in Rhodesia, amid a period in which the country would be under the management of
United Nations forces. Obasanjo backed the plan, and visited Tanzania, Zambia, Mozambique, and the Democratic Republic of Congo to urge their governments to do the same. However, after Thatcher became UK prime minister, Nigeria distanced itself from British efforts to end the Rhodesian Bush War and was excluded from any significant role in the UK-brokered process that led to
multi-racial democratic elections in Rhodesia. As head of state, Obasanjo attended OAU summits. At that held in July 1977, he proposed the formation of a standing committee to mediate disputes between OAU member states. At the 1978 conference, he warned of interference from both sides in the
Cold War. At the next conference, he urged the formation of a Pan-African military which could engage in peace-keeping efforts on the continent. To promote Nigeria's role internationally, Obasanjo involved himself in various mediation efforts across Africa. In 1977, he persuaded Benin and Togo to end their border dispute and reopen their frontier. He also attempted to mediate a quarrel among several East African states and thus prevent the collapse of the
East African Community, but failed in this attempt. As the chair of the OAU mediation committee, he tried to mediate the
Ogaden dispute between Ethiopia and Somalia but was again unsuccessful. He also failed to mend the breach that had emerged between Angola and the Democratic Republic of Congo. On behalf of the OAU, Obasanjo held a conference at Kano to mediate the
Chadian Civil War. Several factions agreed to a ceasefire, to form a government of national unity, and to allow Nigerian troops to act as peacekeepers. The war nevertheless continued and Nigeria responded by cutting off its oil supply to Chad. A second conference on the conflict took place in Lagos in August 1979, resulting in the formation of another short-lived transitional government. In the final year of his military government, he headed an OAU mission to resolve the conflict in
Western Sahara.
Transfer of power The military government has assembled a constituent drafting committee to devise a new constitution which could be used amid a transfer to civilian rule. The committee argued that Nigeria should change its governance system, which was based on the British parliamentary system, to one based on the U.S. presidential system whereby a single elected president would be both
head of state and
head of government. To avoid this president becoming a
dictator, as had happened elsewhere in Africa, it argued for various checks on their power, including a federal structure whereby independent elected institutions would exist at the federal, state, and local level. The draft constitution was published in October 1976 and debated in public for the following year. A constituent assembly met to discuss the draft in October 1977. The assembly deadlocked over what role to give
sharia law in the constitution. Obasanjo called the assembly together and warned them of the social impact of their decision, urging them to take a more
conciliatory attitude. In September 1978, the Supreme Military Council announced the new constitution; it had made several amendments to the version put forward by the constituent assembly. Along with the new constitution, Obasanjo lifted the ban on political parties. A variety of groups then formed to compete in the ensuing election, most notably the Unity Party of
Yoruba, the
Nigerian People's Party, and the
National Party of Nigeria. Obasanjo was angered that many of the politicians were making promises that they could not keep. The elections took place over the course of July and August 1979. Turnout was low, at between 30 and 40 percent of legally registered voters, and there was rigging on various sides, although it was peaceful. There was debate as to who won the
presidential vote, and Obasanjo refused to adjudicate, insisting that the Electoral Commission take on that role. They declared that
Shehu Shagari was the winner, something that the runner up,
Obafemi Awolowo, unsuccessfully challenged at the Supreme Court. Shagari took office in October 1979; at his inauguration ceremony, Obasanjo presented Shagari with a copy of the new constitution. This marked the start of Nigeria's Second Republic. Obasanjo's role in returning Nigeria to civilian rule would form the basis of the good reputation he retained for the next two decades. However, various domestic and foreign individuals, including the Zambian president
Kenneth Kaunda and Togo President
Gnassingbé Eyadéma, urged him to remain in power. His refusal to back Awolowo, a fellow Yoruba, earned him the enmity of much of the Yoruba elite. Awolowo accused Obasanjo of orchestrating Shagari's victory, something Obasanjo strenuously denied. == Pre-presidency (1979–1999) ==