The Federal Military Government of Nigeria, led by General Murtala Mohammed and later by General Olusegun Obasanjo, initiated a major reform of the local government system in 1976.

The reform aimed to establish a uniform and efficient system of local administration that would enhance grassroots development and democracy.

The reform created 299 local government areas, each with its own elected council, executive committee, and staff.

The reform also defined the functions, powers, and sources of revenue of the local governments, and made them the third tier of government in the federation.