According to the Minister of Information, Mr Labaran Maku, the new city will serve as a memorial for the future generation of Nigerians.
He said the new city which will be located near Abuja will have modern features including a conference centre that will be the first of its kind in Africa that can host all global events within Nigeria.
The new city is a recommendation by a committee headed by the secretary to the government of the federation.
He said the celebration of the centenary is significant to Nigeria as a country.
N478 million for two rail gauge
Meanwhile FEC also on Wednesday approved feasibility studies for two new standard gauge railway lines in the country at the collective sum of N478 million.
The approved contracts for feasibility studies in railway are in accordance to the railway modernisation programme of the present administration.
The Minister of Transportation, Senator Idris Umar, stated that rail-lines covering 673KM will run from Benin to Obudu Cattle Ranch.
It is expected to cost N334 million while the second rail line is from Ajaokuta to Abuja covering 280KM at the cost of N144 million.
He said that the scope of work will include the design for connection to urban settlements along the routes and prepare the evaluation for appropriate private public partnership