istration inherited a dysfunctional bureaucracy, a collapsed infrastructure, a breakdown in the rule of law, and a highly militarised political system. The administration therefore developed solutions aimed at reversing the negative trends and moving Nigeria toward stability, broad-based growth, development and prosperity for all. The resolution framework was outlined in a document known as the National Economic Empowerment and Development Strategy (NEEDS). Obasanjo is also lauded for embarking on a war against corruption and money laundering, and for the campaign to recover funds said to have been looted by the late military dictator, General Sani Abacha. However, Obasanjo championed a bid to amend the constitution to allow for a third term in office, which the National Assembly rejected in May 2006. This was a victory for Nigerian democracy. 2.3 The elections held in May 2007, although marred by irregularities, nevertheless marked a record eight years of continuous democratic rule since the country’s independence in 1960. It was also the first time that there was a transfer of power from one civilian government to another. 2.4 To sustain and deepen the reforms, the incoming administration of President Yar’Adua launched a seven-point agenda. This stated policy priorities that are intended to strengthen the reforms and build the economy, so that the reforms are widely felt by citizens across the country. The focus is to drive the type of growth which recognises the economic value of natural and human capital. The priorities stated in the agenda address: 2.5 4 • Sustainable growth in the real sector of the economy. • Physical infrastructure (power, energy, transportation, agriculture and human-capital development). • Education and health. • Security; law and order. • Combating corruption. • Development of the Niger Delta. The main challenge that continues to plague Nigeria is the paradox of poverty in the midst of plenty. Why does the biggest oil producer in sub-Saharan Africa have the world’s third-largest concentration of poor people? Nigeria also faces the challenge of reversing values and attitudes acquired during its military history. It needs to promote transparency and accountability in governance systems, tackle problems of implementation, and not effect frequent policy reversals in order that it may promote sustainable development. Another critical challenge to be addressed is that of tackling corruption and the attendant practices of graft, bribery and nepotism.