Lagos State has secured the top position in Nigeria’s 2025 Subnational Ease of Doing Business Report, strengthening its reputation as the country’s most competitive environment for investment and enterprise growth.
The Presidential Enabling Business Environment Council (PEBEC) confirmed that Lagos scored 85.6%, outperforming all 36 states and the Federal Capital Territory (FCT). Kaduna followed with 65.1%, while Oyo, the FCT and Ogun completed the top five.
The report, released by PEBEC Director-General Zahrah Mustapha-Audu, evaluates states across 16 indicators and 36 sub-metrics, covering power supply, infrastructure, digital systems, trade logistics, taxation, land administration, justice delivery, and skilled labour availability.
According to Mustapha-Audu, Lagos and other leading states excelled because they consistently improved digital processes and maintained stable regulatory frameworks that support business growth and investor confidence.
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Key Reform Priorities for States
PEBEC highlighted five reforms states can adopt immediately to strengthen their business environments:
1. Establish stronger investor aftercare systems.
2. Expand credit support for MSMEs.
3. Harmonise rules to simplify interstate trade.
4. Improve commercial justice systems for quicker dispute resolution.
5. Enhance power reliability for industrial and manufacturing clusters.
Mustapha-Audu noted that PEBEC will continue to guide states through the $750 million State Action on Business Enabling Reforms (SABER) programme, which supports the adoption of coordinated business reforms nationwide.
How States and MDAs Performed
Beyond Lagos, other high-ranking states include:
Kaduna – 65.1%
Oyo – 62.7%
FCT – 61.0%
Ogun – 59.9%
Similarly, PEBEC assessed 69 federal ministries, departments and agencies (MDAs) under the Business Facilitation Act (BFA) Compliance Report. The highest-performing MDAs were:
- 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%
PEBEC said these improvements reflect ongoing alignment with the transparency standards required under the BFA.
What the Ranking Means for Investors
The 2025 report provides a clear guide for investors seeking stable environments for growth. Lagos’s performance highlights the state’s improved digital infrastructure, better approval processes, and stronger support for both local and foreign businesses.
States showing significant improvement are expected to attract increased interest from investors focused on manufacturing, infrastructure development, MSME expansion, and technology services.
PEBEC Chair and Vice President Kashim Shettima emphasized that the report will shape future policy reforms, encourage competition among states, and build a more predictable investment climate nationwide.
The 2025 Subnational Ease of Doing Business Report shows that strategic reforms can rapidly improve Nigeria’s business environment. With Lagos setting the pace and other states following, Nigeria is moving toward a more efficient, competitive and investment-friendly economy.
