The States (Creation and Transitional Provisions) Act No. 14 of 1967 dividing Nigeria into twelve states had Lagos doubling as the Federal Capital and the Capital of Lagos State.
This dual role understandably heightened the pressure on the infrastructural facilities that existed then. And the pressure was manifested in various economic and social ills among which are: over population, high cost of living, particularly rents, traffic congestion, existence of slums, high mortality rate, delinquency and drug abuse.
The reaction of the majority of the population to these social ills which persisted in spite of vigorous attempts to combat them by both the former Federal Military Government and Lagos State Government, put into sharp focus the need to review the position of Lagos as the Federal Capital.
The Federal Government of Nigeria therefore decided to create a new capital city; due to the non-functionality of Lagos as the Federal Capital city. Consequently on August 9, 1975 a Panel was set up under the Chairmanship of the Honourable Mr. Justice T.A. Aguda to advise on the location of the Federal Capital with the following Terms of Reference:-
The Panel undertook a working tour of some world Capitals particularly very recent ones then with a view to gathering useful information and data that would assist them in their work. They also toured the country extensively and received memoranda from interested individuals/organisations as well as from the then 12 State Governments of the Federation.
On December 20, 1975, the Panel submitted its report to the Federal Military Government, headed by Gen. Murtala Ramat Mohammed. It concluded that Lagos was incapable of playing the dual role of being the Federal and Lagos State Capital in view of its overwhelming problems particularly inadequate land space for meaningful development commensurate with its status as the capital of Nigeria. The total land space in Lagos was estimated at 67.12 sq.km. and this was considered grossly inadequate for the use of the Federal Capital City alone. It also highlighted other points that guided it in arriving at the recommendation that the Federal Capital of Nigeria should be moved out of Lagos and located in an area south of Suleja covering an area of 8,000 sq.km. The conlusion is that a centrally-located Federal Capital in a spacious area with easy access to all parts of the Federation would be an asset to the Nation and would help in generating a new sense of National Unity.
The recommendation of the Panel was accepted by the Federal Military Government and to give it a legal backing, Decree (Act) No. 6 of 1976 was promulgated thereby establishing the Federal Capital Development Authority which consists of a Chairman and eight other members.
Under the Act, the Authority was charged with the responsibility for:-