Murtala Muhammad set in motion the stalled machinery of devolution to civilian rule with a commitment to hand over power to a democratically elected government by October 1979. The transition, as outlined by Murtala Muhammad, would take place in successive stages. In August 1975, he appointed a five-member panel to study Gowon's plan for a nineteen-state federation that would "help to erase memories of past political ties and emotional attachments." The plan, reaffirmed by the panel, assaulted ethnic power by recommending that the predominantly Yoruba Western State be divided into three states, the Igbo East Central State into two, and the six states of the north into nine states, only three of which would be predominantly Hausa-Fulani. Murtala Muhammad claimed that he wanted to avoid the "proliferation of states" that would highlight the problems of minorities and warned petitioners that no further demands for new states would be tolerated. In the end, seven more states were created. In 1976 Nigeria came to have nineteen states.

In October 1975, Murtala Muhammad named a blue-ribbon committee, drawn from business, the professions, universities, and the civil service, as well as from prominent civilian political leaders, to draft a constitution that would be put before a constituent assembly for approval. Awolowo, the spokesman for the Nigerian left, was excluded from the committee. Murtala Muhammad cautioned the drafting committee against opening old wounds. He favored consensus politics that avoided the institutionalized opposition of the former constitution. Rather than a British parliamentary system, he wanted executive and legislative functions clearly defined, preferring a strong executive on the United States model. In his instructions to the committee, Murtala Muhammad said he preferred the elimination of all political parties, and failing that, he suggested that parties be limited in number to those with a genuinely national constituency.

Murtala Muhammad was assassinated during an unsuccessful coup d'état in February 1976, and the country went into deep mourning. In less than a year, this man had captured the hearts of many Nigerians. The political shake-up and the decisive leadership in the midst of rapid economic growth seemed to promise a bright future. In fact, there was considerable opposition to Murtala Muhammad that would have become more pronounced in the succeeding months, but this opposition was stifled under the outpouring of national loss.

The attempted coup reflected dissatisfaction within the military that was unconnected with the larger currents of opposition in the country. Two groups of conspirators were involved in the coup. The first, composed of middle-grade officers, was led by Lieutenant Colonel Bukar Dimka, who was related to Gowon by marriage. Dimka's opposition to Murtala Muhammad was both professional and political. Dimka's group protested demobilization and alleged that the FMG was "going communist." A group of colonels answering to Major General I.D. Bisalla, the minister of defense, waited in the wings for Dimka's37d 's group to overthrow the government, and then planned to seize power. Dimka, Bisalla, and thirty-eight other conspirators were convicted after a secret trial before a military tribunal and were executed publicly by a firing squad. Evidence published by the FMG implied that both groups of conspirators had been in communication with Gowon, who was accused of complicity in the plot against Murtala Muhammad. The British government refused to accede to Nigerian demands for Gowon's extradition, however, and protests against the decision forced Britain to recall its high commissioner from Lagos.

Data as of June 1991