Lagos, Kaduna Lead: Top 10 States for Ease of Doing Business
- A new assessment shows significant differences in how Nigerian states support business operations
- PEBEC says state-level reforms are critical to improving the ease of doing business nationwide
- Lagos, Kaduna, and eight other states emerged as top performers, based on specific indices
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
A report by the Presidential Enabling Business Environment Council (PEBEC) shows that in 2025, Lagos led the other 35 states and the Federal Capital Territory in ease of doing business in the country.
This means that Lagos State is a more business-friendly climate than other states. PEBEC notes that differences in regulatory systems, infrastructure, and access to services across states significantly influence how businesses operate, from registration processes to securing land and accessing finance.
Source: Getty Images
The report states that Nigeria’s business climate continues to play a critical role in shaping economic stability and long-term growth, with a new assessment highlighting wide disparities in how states support enterprises, particularly Micro, Small and Medium-sized Enterprises (MSMEs).
Top 10 performing states
According to the report, the top 10 performing states in ease of doing business are Lagos State, Kaduna State, Oyo State, the Federal Capital Territory, Ogun State, Enugu State, Plateau State, Ekiti State, Kano State, and Nasarawa State.
The council noted that while progress has been recorded nationally, meaningful improvements depend on how effectively states implement reforms tailored to their unique economic environments.
The assessment, which draws on administrative and publicly available datasets, focuses on the adoption of technology in public service delivery as a key indicator of business readiness.
It found that digital tax payments and the automation of selected government services are gaining traction in several states, reflecting a shift towards transparency and efficiency.
However, these improvements exist alongside deeper systemic challenges. Core areas such as investor support services, access to credit, dispute resolution, and interstate trade governance remain underdeveloped in more than 70% of states.
Infrastructure, labour constraints hinder competitiveness
Beyond regulatory issues, the report identified persistent structural barriers affecting business productivity nationwide.
Limited access to reliable electricity, inadequate transport infrastructure, and shortages of skilled labour continue to constrain growth and competitiveness across many states.
In contrast, reforms that require administrative changes, such as improvements in digital connectivity and regulatory compliance processes, have recorded more consistent progress, suggesting that deeper institutional reforms remain more difficult to implement.
Source: Getty Images
Top-performing states emerge as benchmarks
Despite the challenges, the report noted that the performance of the ten leading states was driven by data-informed reforms and coordinated policy implementation, which offers a model for improving Nigeria’s broader business environment.
The report noted that this is the first in a series of assessments aimed at tracking reform progress, identifying priority interventions, and supporting sustainable economic growth across the country.
FG raises 2026 borrowing plan to N29.2tn
Legit.ng earlier reported that the federal government has increased its borrowing plan for 2026 to N29.2 trillion following an expansion of the proposed budget, according to documents.
The revised figure represents an increase of N11.31 trillion from the earlier N17.89 trillion projection contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning.
Details from the 2026 Appropriation Bill approved by the National Assembly show that total debt financing has risen sharply as expenditure outpaces revenue projections.
Source: Legit.ng
