Lagos Tops Nigeria’s 2025 Subnational Ease of Doing Business Rankings, Paving Way for Investment Growth
Lagos Tops Nigeria’s 2025 Subnational Ease of Doing Business Rankings, Driving Investor Confidence
Lagos State has emerged as the highest-performing state in Nigeria’s 2025 Subnational Ease of Doing Business Report, achieving an 85.6% score, according to the Presidential Enabling Business Environment Council (PEBEC). Kaduna followed in second place with 65.1%, while Oyo, the Federal Capital Territory (FCT), and Ogun completed the top 5.
The report, released by PEBEC Director-General Zahrah Mustapha-Audu, provides a comprehensive, data-driven evaluation of how Nigeria’s 36 states and the FCT are shaping business competitiveness through regulation, infrastructure, and administrative efficiency. Performance was assessed across 16 indicators and 36 sub-metrics, covering electricity provision, infrastructure development, digital connectivity, land administration, taxation, trade logistics, justice delivery, investor support, and skilled labour availability.
According to Mustapha-Audu, the leading states distinguished themselves through consistent reform momentum, improved digital processes, and predictable regulatory frameworks, enabling a more favourable environment for business growth.
Key Reform Recommendations for States
The report highlights 5 priority interventions that states can implement immediately to strengthen their business environments:
Establish robust investor aftercare systems.
Expand credit enablement for micro, small, and medium enterprises (MSMEs).
Harmonise interstate trade rules to reduce transaction friction.
Upgrade commercial justice procedures to improve dispute resolution.
Enhance power reliability for industrial clusters to support manufacturing and services.
Mustapha-Audu noted that PEBEC will continue to support states in adopting these reforms, particularly through the $750 million State Action on Business Enabling Reforms (SABER) programme, designed to accelerate subnational reform adoption.
Performance of Key States and MDAs
Beyond Lagos, the report shows varying performance levels across other states. Kaduna secured second position at 65.1%, followed by Oyo (62.7%), the FCT (61.0%), and Ogun (59.9%). Enugu and Plateau both scored 56.2%, while Ekiti (55.8%), Kano (54.8%), and Nasarawa (53.4%) rounded out the top ten.
In parallel, PEBEC’s 2025 Business Facilitation Act (BFA) Performance Report assessed the operational efficiency of 69 federal government ministries, departments, and agencies (MDAs) from January to October. The top-performing MDAs included:
Nigerian Content Development and Monitoring Board – 90.6%
National Drug Law Enforcement Agency – 89.0%
Nigeria Customs Service – 86.6%
Nigerian Communications Commission – 85.3%
Nigerian Ports Authority – 84.2%
These results demonstrate that federal MDAs are progressively aligning with transparency and efficiency standards mandated by the BFA, supporting broader improvements in the national business environment.
Strategic Implications for Investors and Policymakers
PEBEC, currently chaired by Vice President Kashim Shettima, was established in July 2016 to remove bureaucratic and legislative constraints to doing business and enhance Nigeria’s competitiveness. According to Mustapha-Audu, the 2025 Subnational EoDB Report offers a critical foundation for investment decisions, long-term policy planning, and targeted reforms aimed at boosting subnational competitiveness.
For investors, Lagos’s top ranking underscores the state’s readiness to host diverse business activities, from industrial operations to technology and service sectors. Enhanced digital processes, streamlined approvals, and reliable infrastructure position Lagos as a primary destination for domestic and foreign capital. Similarly, states improving their rankings are likely to see increased investor confidence, particularly in MSME development, infrastructure projects, and trade expansion.
Conclusion
The 2025 Subnational Ease of Doing Business Report confirms that targeted reforms, regulatory predictability, and infrastructure development are central to enhancing subnational competitiveness in Nigeria. With Lagos setting the benchmark and other states adopting strategic interventions, the business climate across Nigeria is poised for more structured growth, improved investment flows, and sustainable economic development.
