Fela was born Olufela Olusegun Oludotun Ransome-Kuti on 15 October 1938 in Abeokuta, Ogun State, Nigeria into an upper-middle-class family. His mother, Funmilayo Ransome-Kuti, was a feminist activist in the anti-colonial movement; his father, Reverend Israel Oludotun Ransome-Kuti, a Protestant minister and school principal, was the first president of the Nigeria Union of Teachers.His brothers, Beko Ransome-Kuti and Olikoye Ransome-Kuti, both medical doctors, are well known in Nigeria. Fela was a first cousin to the Nigerian writer and Nobel laureate Wole Soyinka, the first African to win the Nobel Prize for Literature.
He attended the Abeokuta Grammar School in Abeokuta and later he was sent to London in 1958 to study medicine but decided to study music instead at the Trinity College of Music, the trumpet being his preferred instrument. While there, he formed the band Koola Lobitos, playing a fusion of jazz and highlife. In 1960, Fela married his first wife, Remilekun (Remi) Taylor, with whom he would have three children (Femi, Yeni, and Sola). In 1963, Fela moved back to Nigeria, re-formed Koola Lobitos and trained as a radio producer for the Nigerian Broadcasting Corporation. He played for some time with Victor Olaiya and his All Stars.
In 1967, he went to Ghana to think up a new musical direction. That was when Kuti first called his music Afrobeat. In 1969, Fela took the band to the United States where they spent 10 months in Los Angeles. While there, Fela discovered the Black Powermovement through Sandra Smith (now Sandra Izsadore), a partisan of the Black Panther Party. The experience would heavily influence his music and political views. He renamed the band Nigeria '70. Soon afterwards, the Immigration and Naturalization Service was tipped off by a promoter that Fela and his band were in the U.S. without work permits. The band immediately performed a quick recording session in Los Angeles that would later be released as The '69 Los Angeles Sessions.