Further, the division and polarisation of elites lead to the exclusion of political rivals from the ruling coalition, even if they are the people best able to contribute to governance and nation building. The result is that critical problems relating to economic development, institutional reforms and needed public goods are not resolved. 2.4 Nigeria’s democratic milestones Nigeria as a nation and the Federal Character Principle 117. The survival of Nigeria as one nation after almost half a century since independence, and despite the trauma of civil war, is worthy of celebration. Although the federation began as a loose politico-administrative arrangement that better served the interests of the colonial power than the local people, the Nigerian federation is an economic and political reality to which all Nigerians subscribe in consensus. The federation is further strengthened by the adoption of the Federal Character Principle as Nigeria’s distinctive instrument for equitable power and resource distribution, as well as guaranteed access and opportunities for all. 118. The principle combines the strengths (and weaknesses) of proportionality, the quota system, affirmative action/reverse discrimination, ethnic arithmetic and political balancing. On the whole, and notwithstanding its pitfalls and shortcomings – which include encouragement of a culture of entitlement, the loss of merit and its attendant consequences for publicsector efficiency, and the polarisation of national institutions like the armed forces, the police, the civil service and universities – the principle has effectively served the objective of national cohesion. Federalism as practised in Nigeria has been functional in assuaging minority sentiments and promoting ethnic, cultural and religious tolerance. This is something other African countries with similar social formations to that of Nigeria can learn from. Consolidation of democracy and democratic rule 119. 52 Nigeria is now enjoying the longest period of civilian rule since independence in 1960. The 2007 general elections marked the democratic milestone of the first ever civilian-to-civilian handover of power in the nation’s history. Another significant milestone for Nigerian democracy was achieved when, on 16 May 2006, the National Assembly rejected constitutional amendments that would have allowed the president, and perhaps state governors, to run for a third term in office. The durability of civilian rule since 1999 and the rejection of the third-term agenda together signify an early democratic consolidation phase in Nigeria and should be applauded as an unprecedented achievement. Nigerians appear to have come to a consensus that democracy is the only acceptable alternative for the nation. In fact, many Nigerians believe that, with this watershed event, the concept of a Nigerian nation also appears to have taken root.