structural:reformatting
12 June and the crisis of the Third Republic

Babangida legalized the formation of political parties and formed the two-party system with the Social Democratic Party and National Republican Convention ahead of the 1992 general elections. He urged all Nigerians to join either of the parties, which Chief Bola Ige referred to as "two leper hands". The 1993 presidential election held on 12 June was the first since the military coup of 1983. The results, though not officially declared by the National Electoral Commission, showed the duo of Moshood Abiola and Baba Gana Kingibe of the Social Democratic Party defeated Bashir Tofa and Sylvester Ugoh of the National Republican Convention by over 2.3 million votes. However, Babangida annulled the elections, leading to massive civilian protests that effectively shut down the country for weeks. In August 1993, Babangida finally kept his promise to relinquish power to a civilian government but not before appointing Ernest Shonekan head of an interim national government. Babangida's regime has been considered the most corrupt and responsible for creating a culture of corruption in Nigeria.

Shonekan's interim government, the shortest in the political history of the country, was overthrown in a coup d'état of 1993 led by General Sani Abacha, who used military force on a wide scale to suppress the continuing civilian unrest. In 1995, the government hanged environmentalist Ken Saro-Wiwa on trumped-up charges in the deaths of four Ogoni elders, which caused Nigerian's suspension from the Commonwealth. Lawsuits under the American Alien Tort Statute against Royal Dutch Shell and Brian Anderson, the head of Shell's Nigerian operation, settled out of court with Shell continuing to deny liability. Several hundred million dollars in accounts traced to Abacha were discovered in 1999. The regime came to an end in 1998 when the dictator died in the villa. He looted money to offshore accounts in western European banks and defeated coup plots by arresting and bribing generals and politicians. His successor, General Abdulsalami Abubakar, adopted a new constitution on 5 May 1999, which provided for multiparty elections.