Although he had served as President Buhari's army chief, Ibrahim Babangida quickly renounced the policies of his former boss, saying his government "does not intend to lead a country where individuals are under the fear of expressing themselves." The new government freed journalists from prison and allowed public scrutiny of detention centers containing people arrested under Buhari's reign.

But many within the military and elsewhere violently opposed the new leader. Two coup attempts occurred during Babangida's eight years in power; the second, in 1990, almost killed Babangida. The leader was merciless in bringing plotters to justice. The Economist reported Babangida "had 69 fellow army officers executed after trials before a military tribunal," for allegedly plotting the coup.

Despite the military upheavals, Babangida moved forward with political reforms, including a new constitution in 1990 that outlined a return to democracy by 1992. Elections to the bicameral National Assembly took place in 1992, but presidential elections, initially scheduled for later that year, were suspended.

The country tried again in June 1993. Moshood Abiola won the majority of votes, but Babangida's government nullified the results, citing an electoral process rife with fraud. Thousands took to the streets protesting the move and accusing the government of trying to thwart the will of the people. At least 100 people were killed during the fighting; the military arrested human rights activists and shut down newspapers. As the political crisis spiraled further and further out of control, the United States suspended aid and other nations denounced the military government. Facing massive domestic and international opposition, Babangida resigned on August 27, 1993.