In 2000, the Transitional National Government (TNG) of Somalia was formed, which Yusuf's administration opposed out of concern that a new central state would favor the south.

As Yusuf's term approached its end in 2001, his administration controversially moved to extend its rule, sparking a civil conflict within Puntland.

Colonel Abdullahi Yusuf Ahmed, the former head of the Somali Salvation Democratic Front (SSDF), was elected to be the regions first president during July 1998 for a two-year transitionary period.

[1] In 2000, the first attempt at reforming the central Somali state came with the formation of the Transitional National Government (TNG) led by President Abdiqasam Salad Hassan.

In January 2001, Abdullahi Yusuf requested the United Nations 'review its decision' to recognize the TNG and protested to the Arab League about support being given to the government.

After the TNG was formed Ethiopia supported groups in Somalia that resisted it and actively sponsored the formation of opposition alliances to preserve its strategic interests.

[8] In the period before the conflict in Puntland, Ethiopian National Defence Force (ENDF) troops had been making frequent incursions across to support militias fighting against the TNG.

[17] The TNG called on Ethiopia to withdraw its troops from Puntland, but the Ethiopian government denied having any forces there, despite their presence being observed by United Nations staff in the region.

[18] Yusuf declared a state of emergency and suspended the Puntland constitution, claiming that the move was necessary to resolve "confusions" caused by the TNG and its supporters.

[5] During May 2002, Yusuf launched a three-day campaign with Ethiopian military support to capture the port city of Bosaso, defeated Jama and reasserted his control over much of Puntland.