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Abacha took power from the Interim National Government amid the national crisis caused by Babangida's annulment of the 12 June 1993 presidential election, widely believed won by MKO Abiola.

Rather than resolving it, the regime deepened the crisis — detaining Abiola on treason charges in 1994, where he remained until his death in custody in 1998, and crushing the pro-democracy movement.

The regime inherited high inflation, a weak naira and a large external-debt burden built up over the preceding military years.

Reserves were rebuilt and debt trimmed on paper, but the gains were offset by systemic corruption at the top and the country's slide into international isolation.