Falae's foray into politics started during the Third Republic. Babangida had banned 'old breed' politicians, who were mostly people who had held elective office in the past such as Bola Ige and Lateef Jakande. Falae soon became the candidate of choice for followers of Awolowo and some progressives within the Social Democratic Party. He contested for the post but lost to Shehu Musa Yar'Adua before the elections were cancelled. He later threw his support and organization towards actualizing the presidential ambition of MKO Abiola.