The Aguda Panel (chaired by Justice T. Akinola Aguda, December 1975) recommended a new capital on neutral ground in the central plateau, citing Lagos's congestion, vulnerability to coastal flooding and ethnic concentration. The Federal Capital Territory Act 1976 carved 8,000 sq km from Niger, Kwara and Plateau States.
The Federal Capital Development Authority (FCDA), under Mobolaji Ajose-Adeogun, oversaw the master plan by International Planning Associates (Wallace, McHarg, Roberts & Todd / Skidmore, Owings & Merrill / Kenzo Tange Associates). Construction began in earnest under Shagari (1979–83) but was repeatedly suspended for funding. Babangida formally moved the seat of government on 12 December 1991. The relocation's cumulative cost, by the 2014 audit cited by Premium Times, exceeded $30 billion in constant dollars. Lagos retained its commercial primacy; Abuja's intended decongestion of Lagos never materialised. The relocation reshaped the federal civil service (Northern majority by location), property markets and, crucially, the geography of presidential influence — the 'Aso Rock factor' that has shaped every administration since.