Colonial administrator Frederick Lugard chose the town as capital of Northern Nigeria over Jebba and Lokoja[2] due to its central location.

[3] The British cleared the forest in the area and established a market, military barracks, and hospital, among other things.

After the capital was moved to Kaduna, Zungeru was administered from Minna as part of Niger province.

[3] Sites in modern Zungeru include the Nnamdi Azikiwe Centre, a now-abandoned tribute to Nigeria's first President Nnamdi Azikiwe built by Ibrahim Babangida's military regime,[3] the market built by Lugard, which is still in use,[4] and Niger State Polytechnic.

As of 2007, the Hausa, Edo, Igbo, Yoruba, and Fulani are the dominant ethnic groups in Zungeru.