With the murder of Murtala Muhammad, the reins of power fell into the hands of his deputy head of state, Lieutenant Olusegun Obasanjo, a Yoruba-speaking Christian from the south. Obasanjo continued the work of his former chief, including the four-year plan for a democratic transition. He established the Federal Election Commission (FEDECO) in order to take the potentially rancorous election process out of partisan hands.

Over the next three years, Obasanjo and his colleagues wrote a new constitution, delineating a presidential role similar to the American presidency. Obasanjo also created seven more states to ease ethnic and religious tensions and allowed states increased autonomy. In 1979, as outlined in Murtala's plan, Obasanjo stepped aside following elections.