The Alliance for Democracy was established in 1998 by former close associates of Chief Obafemi Awolowo, the late leader of the Action Group and Unity Party of Nigeria. In particular, the party was formed to promote the cause of the Yoruba people in the Nigerian federation following the annulment of the June 12, 1993 presidential election widely believed to have been won by Chief M. K. O. Abiola, a Yoruba multi-millionaire businessman.

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