President Umaru Musa Yar'Adua has given new impetus to plans for special federal legislation regulating the development of Lagos in recognition of its status as a mega city. The bill will cover such areas as road and rail infrastructure development and the creation of new satellite towns to decrease congestion in the city. Plans will require cooperation between the federal government, Lagos state government and the government of neighbouring Ogun state, where many people who work in Lagos live.

Capital of Nigeria until 1991, Lagos has remained the commercial and industrial nerve-centre of the country. This has led to rapid population growth as people have moved to the city from rural areas, putting pressure on already over-stretched infrastructure and resources. Unofficial estimates put the population at around 15 million.